Inflation: Food increase would not allow to break the floor of 2%

Inflation: Food increase would not allow to break the floor of 2%

The last report of Orlando Ferreres & Associateswhich relieved more than 15,000 prices of goods and services in Greater Buenos Aires, estimated that January 2025 will be the same as in November 2024: 2.4% the lowest index that reached the management of Javier Milei.

In that framework, The current government would have an interannual inflation of two digits for the first time, which would not transfer the 95% gapa drastic reduction compared to 117.8% of the last time, which was driven by the inflationary climbing of 25.5% in the month of December 2023).

Among the higher pricing items would be Food and drinkswith a 4.1% monthly increase; followed by the category Housing (2.9%), various goods (2.7%); Recreation (2.2%), transport and communications (2%) and health (1.6%). On the other hand, the average price of the items of the item would have dropped Home equipment and operation in 0.5%.

food prices inflation fruits vegetables.jpg

The price of food is one of the most impacts on inflationary estimate.

Reuters

January inflation: private projections estimate December levels

Other private consultants share the look about the Inflation in January, And they point out that It will be between 2.5% -2% monthlywhich implies a slowdown with respect to December. If these projections are fulfilled, two milestones could occur: Being the lowest inflation for a January since 2018 and the year -on -year would return to two digits for the first time since October 2022.

The consultant LCG estimated that inflation of January It will be below 2.5% But that the rise in prices of food and drinks It will be 2.4%. “Panified explains almost 40% of food and drinks inflation; drinks adds another 22%,” they said in a report.

In turn, the retail price survey Eco Go For the fourth week of January, he revealed that the weekly food variation was 0.7% and that The final projection for the whole month is 2.3%. “The upward correction responds to an increase in food greater than expected and a rises of 17.6% in ICC labor and cigarettes,” they explained.

In turn, the survey of retail prices of C&T For the region GBA daring A monthly increase of 2% in January. As indicated by the analysis, this inflation rate is the child in the last 53 months and the lowest for a January since 2018. In this way, The annual C&T inflation rate was 93.4%, the lowest since October 2022.

In January the tourism component led the rise, with 6.2% monthly, something common for vacations. The rest of the items had much more moderate increases. Transportation and communications increased 2.6% monthly, led by the second, with 3.4%, while in transport the maintenance of vehicles explained the rise. For its part, health increased 2%driven by health services (2.6%), while medicines and other inputs increased 0.9%, “he concluded C&T.

From ANALYTICSthey also measured the projection of inflation in January, and where appropriate, they estimate it in a monthly 2.3%.

Source: Ambito

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