The price of meat continues to slow down, even below inflation

In a complex economic context resulting from the severe drought that devastates agribusiness, the increase in grain prices due to the Russo-Ukrainian war and the high inflation registered by our country -the fourth highest in the world in interannual terms-, the meat increased its price below general inflation.

For its part, the Argentine Rural Confederations (CRA) reinforces its idea that the meat industry it is not the driver of inflation in Argentina. As general inflation reached 88% in regards to the period between October 2021 and October 2022, it can be contrasted with what increased the barbecue (70.8%), the meat common chopped (69%), shoulder (70.6%) rump (72.2%) and buttock (70.1%).

Drought and war affect agribusiness.

The prices of the meat they saw a greater deceleration with respect to general inflation, which in the month of November reached 4.9% and achieved an upward yoy price variation of 85.3%. Even though the prices of the meat grew more slowly, the consumption of beef product in our country it is at low levels, this being 47 kilos per inhabitant per year, its historical minimum.

This particular variation in the price of meat products, according to the CRA, is due to the fact that the standing farm brought back its nominal prices. In addition, the sector is undergoing a “cooling off” in the economy of the countries to which these products are exported. On the other hand, Rural Confederations states that the problem of inflation is the loss of purchasing power of the peso and stresses that the meat It is not a price maker.