Argentina’s inflation rate reached 2.4% in February, with predictions for an increase in March. Economic challenges include reduced consumer spending and rising prices exacerbated by seasonal factors. The Central Bank has shifted forecasts to predict inflation rates of 2.3% in February and 2.2% in March, highlighting continued economic pressures.
The Argentine National Institute of Statistics and Census recently reported that the National Consumer Price Index for February stood at 2.4%, leading analysts in Buenos Aires to predict a further rise in March, surpassing the core inflation rate of 2.9% from February. Analysts attribute this inflationary trend to reduced consumer spending, which fell 10.2% last month, despite the government’s claims of success under President Javier Milei’s administration.
Inflationary pressures are being intensified by seasonal factors including the start of the school year and increased transport costs. Additionally, uncertainties surrounding the currency and ongoing economic adjustments are significant contributors to the inflationary landscape. Nationwide, consumption has declined for 15 months consecutively, with notable downturns in sales of soft drinks, alcoholic beverages, and household products.
In February, the basic food basket (CBA) increased by 3.2%, the highest rise in six months, outpacing the 2.3% increase of the poverty-line basket. A typical family in Argentina requires AR$ 1,057,923 (approximately US$ 881.6 at the unofficial rate) monthly to avoid poverty and AR$ 468,108 (about US$ 309) to prevent indigence, reflecting the pressing economic conditions.
According to the report by Indec, inflation in February rose from 2.2% in January, accumulating an increase of 66.9% over the year, with prices rising by 4.6% year-to-date. Significant increases were noted in the categories of Housing, Water, Electricity, Gas, and Other Fuels (3.7%), driven by rent and utility costs, as well as Food and Non-Alcoholic Beverages (3.2%), largely due to escalating meat prices.
In contrast, Household Equipment and Maintenance only increased by 1%, while Clothing and Footwear had a minimal rise of 0.4%. Regional variations were noted, with the highest inflation in Patagonia (3.2%) and the lowest in the Northeast (1.9%). In Buenos Aires City, the inflation rate dropped to 2.1% due to a decline in tourism services, yet its year-on-year inflation rate reached 79.4%. Furthermore, unemployment in Buenos Aires reportedly surged by 50% in the past year.
Lastly, the Central Bank of Argentina’s recent forecasts have shifted to predict inflation rates of 2.3% for February and 2.2% for March. This marks a concerning deviation from previously projected downward trends in inflation.
In summary, Argentina’s inflation remains a critical issue, with predictions of further acceleration in March driven by various factors, including reduced consumer spending and seasonal pressures. Despite some government claims of success, the persistent rise in inflation and the economic struggles of the populace underscore the ongoing challenges facing the nation. The need for strategic economic adjustments remains vital to address these inflationary trends and help alleviate the burden on Argentine families.
Original Source: en.mercopress.com
