Worth inflation for the month of November of 4.9 percentage points, the deceleration is already perceived in terms of the rise in prices of goods and services in Argentina, despite being a heterogeneous value between the Autonomous City of Buenos Aires (CABA ), Greater Buenos Aires (GBA) and the interior, all values are down
According to Di Tella University, the inflation expected for the next 12 months is 69.9%. This worth represents a contraction of close to three percentage points because, in November, this value stood at 72.4%. As previously mentioned, there are differences between CABA, GBA and the interior, since in the first of the regions there is an expectation of 75.7%; then 67.2% and 69.8% respectively.
If income levels are analyzed, expectations of price variation is again markedly different. In the case of higher-income dwellings, said projection of inflation it is 74.6% average and 80% in the median, while in the case of lower-income households, this value is 63.2% on average and 60% in the median.
According to the segmentation by regions, inflationary expectations have improved in all areas, in CABA it was reduced to 0.4%; in GBA, the contraction was 4.1% and in the interior, 2.5%. On the other hand, the Survey of Market Expectations carried out by the Central Bank suggests a inflation by 2023 close to 99.7%.
Cause of low inflation
Claudio Caprarulo, an economist at Analítica, suggested that the drop in price increases mainly refers to what happened in Food and Beverages (non-alcoholic). On the one hand, seasonal vegetables fell a lot and beef is cheaper than pork.
With respect to the fact that the Core CPI fell below 5%, in the words of Caprarulo: “If the government maintains a certain line that it has been doing and sustains it, it can generate positive expectations going forward. In any case, we have to see what happens in December, as there is a lot of seasonality in prices and there will be more pressure than in November”.
