The sustained increase in prices does not let up in Argentina and, as expected, several items will suffer increases throughout the second month of the year, beginning to put pressure on the Consumer Price Index (CPI) measured by the National Institute of Statistics and Censuses (INDEC) and closed the last year on the verge of 100%.
This year, meanwhile, In accordance with the scheme for increasing the prices of gasoline and diesel oil agreed between the Ministry of Economy of the Nation and the oil companies, fuels will have an increase of 4% in February, although it has not yet been confirmed whether it will be applied from the first days of the month or from the second fortnight. Along the same lines, another 3.8% rise is also expected in March, after the commitment made at the end of November when they entered the Fair Prices program.
As of February 2023, in addition, a new formula will begin to be applied for the increase in prepaid medicine quotas, linked to the salary variation index (RIPTE). Thus, for a term of 18 months, the increase in the value of the quotas will have a maximum limit of 90% of said index of the previous month.
As planned, Throughout the next month there will also be new increases in telephone, television and internet services. The National Communications Entity (ENACOM) authorized increases of up to 9.8% in February and 7.8% in April for telephone, Internet and cable television services; Percentages of increases that apply, in general, to SMEs, cooperatives and smaller companies, since the large firms in the sector resorted to injunctions and precautionary measures that allowed them to increase their invoices above the percentages determined by the regulatory entity.
Tenants who have to make the annual update in February 2023 (due to contracts signed in February 2022 or 2021), for their part, will have to face increases close to 86%. This is marked by the update index established by the current Rental Law, which contemplates in equal parts the monthly variations of the CPI and the variation of the RIPTE. For example, then, a contract of 50,000 pesos per month will increase by 85.8% and will cost 92,938 pesos.
Finally, it should also be remembered that many electricity bills will rise in February for a third of the subsidy reduction being carried out by the National Secretariat of Energy, an increase that will fall on higher-income households (called N1) and also on those of medium income called N3. Sources from the Ministry of Energy estimated that The increase will be between 20% and 30%, but the final decision will be made by the Executive Power and until now it has not been communicated.
