The first year of Javier Milei’s government closed with inflation in December of 2.7% and annual inflation of 117.8%. Given this, some consultancies
Although the Government of Javier Milei closed with a inflation annual of 117.8%, which implies a sharp deceleration. According to a report, this is a “clear success for the Government”, although “there is still a way to go and it can be boasted of price stability once the economy grows again and relative prices appear more or less balancedwithout major tensions”.
For the LCG consulting firm, Many regulated goods and services presented increases well above the average in 2024but these strong increases were not enough to compensate for the delay accumulated in previous years, which suggests that some price recomposition remains.
To define this, The consulting firm took the December 2018 price structure as a starting point.since they understand that “that is the closest moment in time in which relative prices were relatively ‘balanced’.”
Inflation Inflation Prices Dairy Dairy Supermarket Consumption
Mariano Fuchila
Inflation: what consultants expect for 2025
As for the items that still must recompose your prices They are mainly those of regulated goods and services. However, these were the increases in 2024: Electricity, gas and other fuels (430% y/y), Public transport (308% y/y), Telephony and Internet (198% y/y), Prepaid (226% y/y), Rentals (200% y/y) and Fuels (135% y/y).
Despite this, for LCG, still “they were not able to compensate for the delay accumulated in previous years.”
In contrast, there were other sectors that had a “previous overreaction” and therefore did not increase above the average, as Vehicles (112% y/y), Medications (86% y/y), Dress (85% y/y) and Food (95% a/a, with wide dispersion inside).
According to the budget, the annual inflation managed by the Government for public accounts is 18.1%. In turn, according to the last edition of Survey of Market Expectations (REM) of the Central Bank (BCRA), predicted inflation of 23.1% in 2025.
Source: Ambito
