In November 2024, the National Institute of Statistics and Censuses (INDEC) reported that the inflation was 2.4%, a figure that, although it represents a slowdown compared to previous months, is still significant.
This data marks a reduction of 0.3 percentage points compared to October, when inflation was 2.7%. However, the inflation accumulated in the last 12 months reached an impressive 166%, reflecting the persistence of inflationary pressure in the Argentine economy.
The inflation November was mainly driven by the increase in prices in services, with education leading the increase with 5.1%, followed by housing, water, electricity and gas with 4.5%. Despite this slowdown, the impact on households remains considerable, with food prices rising 0.9% over the month.
The INDEC explained that the Consumer Price Index (CPI) does not always reflect increases in personal consumption due to the subjective nature of family expenses. While the CPI measures price variations of a fixed basket of goods and services, families’ expenses can vary depending on their needs and preferences.
For example, households with different numbers of members, ages, and consumption characteristics may experience different price increases. In addition, INDEC launched an interactive tool so that consumers can measure the increase in prices of the goods and services they consume, allowing a better understanding of how inflation affects their pockets.
This tool seeks to provide a more personalized and accurate view of the impact of inflation on each home. However, despite the slowdown in inflation, mass consumption in Argentina has suffered a sharp decline. According to figures provided by the supermarket sector, a 21% drop in sales was recorded in November, which could extend to December.
Drop
This drop in consumption is largely due to the economic adjustments implemented by the government, as well as the effect of the tariffs on citizens’ pockets and the decrease in income. The impact of this drop in consumption is profound, since mass consumption is a fundamental pillar of economic activity.
The decrease in sales affects not only supermarkets, but also a wide range of businesses and productive sectors. Furthermore, 43% of employees in Argentina are in a situation of povertywhich means that their income is not enough to cover the basic basket of goods and services. This situation is even worse among the unemployed, where the figure reaches 77.8%.
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