Inflation hit 2.5 percent in August

The august inflation was located in the 2.5 percent, the lowest value since July last year, Indec reported. The result is closely related to the dynamics of the food and beverage segment, which advanced well below the average, 1.5 percent, also the smallest increase since mid-2020.

The main increases in August were in the item of Health, based on the increase in prepaid fees, home furnishing, clothing and education. In eight months, inflation accumulates 32.3 percent, above the goal of 29 percent that the Government had set for the entire year.

Meanwhile, the year-on-year comparison shows a 51.4 percent rise in prices, just below the 51.8 recorded in July. These inflation numbers, in a very delicate socioeconomic context due to the accumulation of the crisis in the management Let’s change together with the pandemic, determined the deterioration of purchasing power throughout society which explains, to a large extent, the electoral result of the ruling party in the primary elections last Sunday.

Anyway, the movie shows a slow reduction in inflation that allows the government to maintain a certain expectation for the next few months in terms of at least stopping the fall in income in real terms.

From the 4.8 percent peak in March, the rise in prices recorded five consecutive declines: 4.1 percent in April; 3.3 in May; 3.2 in June; 3.0 in July and 2.5 percent in August.

Food, more content

Segment food and beverages rose 1.5 percent last month, the lowest value since July 2020. Within this category, the rise of beverages stood out, due to the traction of infusions. Instead, meat barely advanced 0.3 percent and vegetables, tubers and legumes registered drops. In warehouse, the rises of milk and dairy products and oils and fats stood out.

At the product level, ground coffee rose 10.6 percent and yerba mate, 3.8. The whole milk powder grew 5.6 percent and the whole sachet version, 2.1. In turn, firm yogurt advanced 9 percent; butter 3.8 and Sardinian cheese 3.4 percent. White rice became more expensive by 5 percent and noodles by 2 percent.

In contrast, minced meat fell 3.5 and roast, 2.6 percent. Potatoes fell 4.1 and tomatoes, 11.7 percent. The orange did it in a 7.4 percent and the lemon, 4.1.

Health and clothing

One of the items that registered an acceleration in its inflation rate was health, with 4.2 percent instead of 3.8 percent in July, as a result of the increase in prepaid fees. As approved by the government, prepaid went up 9 percent last month and another 9 percent in September. There will be a new update of 9 percent in October and then another of 9 percent from January 1, 2022.

On clothing, the rate of increase went from 1.2 percent in July to 3.4 percent in August, while in the case of recreation and culture, the advance last month was 3.7 percent, higher than the 3.1 percent in July. Meanwhile, the rise in prices in education was 4.2 percent, up from 2.5 percent in July.

Rates

Housing and basic services rose 1.1 percent, below the 2.9 percent increase in July. In particular, electricity, gas and water fell 3.8 percent as a result of the gas tariff was reduced in some areas of the country due to the expansion of the Cold Zone Regime. In transportation, the 2.4 percent rise is explained by the price readjustment of some services at the provincial level.

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