Analysts anticipate that July inflation will shoot up again to record levels

Private consultants anticipate that the inflation of July will climb again, since, during the first weeks of the month, food prices had new increases, which will impact the general index.

According to Ecolatina, in the first fortnight of July, food reached a rise of 7.9% in relation to the same period of the previous month, so it is expected that, for the seventh month, the inflation is even above the record of March (6.7%), since the price index would reach 7%.

“By July we expect the inflation monthly is the highest so far this year”maintained the consultants, on which the head of the Federal Intelligence Agency, Agustín Rossi, also agrees.

“The price increase recorded in recent days is going to generate higher-than-expected inflation in July, which will generate a deterioration in wages,” Rossi said in radio statements.

Rossi argued that “some sectors promote devaluation.”

In this sense, if the price index picks up again, the annual index would be above 80%, even close to 90%, which would go against the Government’s expectations.

Some analysts also believe that the figure would be much higher and that the Consumer Price Index (CPI) could reach triple digits by the end of 2022.

The category of food and beverages is the one that most affects inflation.

This, given that if in July the figure had a floor of 7%, the annual accumulated would reach more than 43%, while the accumulated figure for the last 12 months would be more than 70%, a historical figure.

What will impact July inflation

In addition to the strong and permanent increases in food prices, during the month of July, overall index will be impacted by the increases planned for this month.