Despite the government’s efforts to lower the inflationthe constant increases in food prices complicate the situation, which in turn affects (again) the income of citizens.
According to the private consulting firm LCG, so far in June, food prices have increased by almost 5%, which puts greater pressure on the inflation this month, since it is expected that the item will contribute 1.4% of the price index general.
Likewise, the consultant highlights that, in the third week of June, food increased 1.5%with which it is expected that the inflation for the sixth month it is once again above 5%.
The report also indicates that, with the latest increase, the item accumulates “eight consecutive weeks with weekly increases above 0.5%. In this way, in the first three weeks of the month, the indicator presented an increase of 4.9%”.
Within the categories that most reported increases are meats, which marked 2.1% and baked goods, 81.9%; that is, they had rises of 0.6% and 0.3% respectively.
The consultant also highlights: “the percentage of products with increases remained without much variation, around 15% of the basket (18% average in the last four weeks)”.
In addition to food, increases in other products and services are also expected for this month, with which the price index would remain higher than expected by the Government.
How much accumulated inflation
According to the latest report from INDEC (National Institute of Censuses and Statistics) between January and May, the price index accumulated 29.3%; this, after the data for January (3.9%), February (4.7%), March (6.7%), April (6%) and May (5.1%).
In case in June the inflation is above 5%, the accumulated will reach more than 34%which complicates the Government’s expectations of closing the year with an accumulated figure of less than 60%.
