The inflation rate in Argentina does not let up. He National Institute of Statistics and Censuses of Argentina reported this Wednesday that the consumer price index accelerated its march in May at a rate of 114.2% year-on-year, undermining the pockets of Argentines in the midst of an election year.
Compared to last April, inflation advanced 7.8%, evidencing a slight acceleration compared to the rate of 8.4% of the previous month, a moderation that experts link to a slowdown in food and beverage inflation to 5.8%, compared to the jump of 10.1% in April.
“Despite this slowdown, we continue to see a very high inflation floor that demonstrates the monetary inconsistency in which the economy finds itself.
Argentina,” said Lautaro Moschet, an economist at the Fundación Libertad y Progreso.
The new escalation in prices that occurred in the fifth month of the year is due, on the one hand, to strong increases in the tariffs for public and health services, and, on the other hand, to the impact of the sharp rise in parallel prices of the US dollar that occurred in April and that ended up being transferred in May to the prices of goods and services.
Expenditures on home rental and services (+11.9%), restaurants and hotels (+9.3%), and health (9%) were the categories with the highest price increases.
So far this year, Argentine inflation is 42.2% and according to central bankthe main economic analysts of that country, estimated that inflation will be 148.9 percent in 2023.
The permanent inflation thus becomes the main concern among Argentines according to the latest edition of Monitor of Social and Political Humor.
With this “humor” Argentines will go to the polls next August for the primary elections and in October for the general elections.
Inflation, in fact, is one of the biggest challenges for the government of President Alberto Fernández and complicates the ruling party in the face of the elections.
“Inflation is a very serious problem in Argentina. Did it start with me? No way. (….) In any case, you cannot live with a
100% inflation,” President Alberto Fernández admitted this Wednesday in an interview with high school students broadcast on social networks.
For now, the Potential candidates for the Presidency hardly talk about “stabilization plans”, without delving into details on how they would do to tame one of the worst economic problems in the country: a major challenge for the government that assumes power next December.
Argentina surpasses Venezuela
With these figures, the inflation figure in May in Argentina was higher than that reported in Venezuela, since according to the Venezuelan Finance Observatory for the month of May the monthly inflation rate in Venezuela was 7.6 percent and the cumulative rate of 84.9 percent. For its part, the annualized amount reached 458%.
“Regarding April, the monthly inflation rate tripled, although the twelve-month rate slowed down,” the entity said.
The items of CPI that experienced the greatest rise were those of recreation (13.3%), dress and footwear (16.7%), household equipment (11.4%) and rental housing (10.3%).
He Observatory added that the figures reflect a environment with low economic activitywhere there is lower trade sales, low industrial production and significant weakness in aggregate demand.
INTERNATIONAL WRITING
TIME
*With information from AFP and EFE
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