Inflation shot up to 7.7% in March, the highest in a year and above what was expected by private consultants, and accumulated a 104.3% rise in the last twelve months, reported INDEC.
In the first quarter, prices rose 21.7%, more than a third of what was projected by the Government for all of 2023.
Its about monthly cost of living, which is only higher than the 10.4% registered in April 2002when the economy had exploded through the air with the crisis of the corralito and Argentina left the parity of the dollar with the peso.
Besides, It is the worst figure from the Government of Alberto Fernández, which had already broken records last July, when the resignation of Minister Martín Guzmán encouraged an exchange run that left the CPI at 7.4%.
The presidential spokesperson, Gabriela Cerruti, attributed the inflation to the “worst moment of the impact of the war” in Ukraine on international prices and to the drought that plagues the country.
“It hurts us, it occupies us, how it affects daily life and each family,” he said in this regard. His statements came minutes after INDEC made official the increase in March prices.
In the first quarter, prices rose 21.7%, more than a third of what was projected by the Government for all of 2023
“The number we see today represents the worst moment of the impact of the war on international prices and the worst drought in history in the country”argued the spokeswoman through her social networks.
Meanwhile, from the Ministry of Economy they calculated that drought and bird flu added 1.5% to March inflation.
They indicated that the rise in the price of fruits, vegetables, bovine meat, chicken and eggs together added around one and a half points to inflation for the month.
“If we discount drought and avian flu from the inflation rate it would be 6.2%,” said a source at the Palacio de Hacienda.
Prices: the main increases in March
The division with the highest increase in the month was Education (29.1%), due to increases in all educational levels at the beginning of the school year.
The following divisions with the greatest variations in the period were Clothing and footwear (9.4%), coinciding with the change of season, and Food and non-alcoholic beverages (9.3%), due to the increases in Meat and derivatives and Milk, dairy products and eggs. The increases in cigarettes were also notable, within Alcoholic beverages and tobacco (8.3%); of water, gas and electricity services in some regions, in Housing, water, electricity and other fuels (6.5%); and fuel and public transport, within the Transport division (5.3%).
March increases: Education, Clothing and Food, above average.
The increase in Food and non-alcoholic beverages (9.3%) had the greatest impact in all regions. Within the division, the rise in Meat and derivatives stood out. In turn, although to a lesser extent, the increases in Vegetables, tubers and legumes stood out, followed by Milk, dairy products and eggs; and ¬nally by Fruits.
The two divisions with the lowest variation in March were Recreation and culture (4.4%) and Communication (1.9%).
At the category level, Seasonal led the increase (9.3%) followed by Regulated (8.3%); while the IPC Núcleo recorded an increase of 7,2%.
Inflation: the increases in April are worrying
The price of kilo of chicken increased 100% in 100 days, and is already worth around $1,000 to the public, according to the latest measurement by Capia, the industry chamber. Barely a couple of points below the price of eggs: the maple that cost $650 after last Christmas is now selling for $1,700 in the city of Buenos Aires. Prices, of course, show no signs of slowing down.
Chicken and eggs are impacted in a double way: to the inflationary dynamics the effects of the bird flu, which forces the slaughter of hundreds of thousands of birds in hatcheries infected by the disease.
The problem is that the drawbacks are not limited to those edge cases. What happens again in this beginning of April is that the new price lists are raining. The novelty is that the increases already have a floor of 7% per month, which confirms that the inflationary escalation does not stop.
From the price lists that companies are sending to wholesalers and supermarkets, it is clear that the index is in those values also in april. In any case, the businessmen themselves fear that -within a few weeks- they will have to speak of a floor higher than that 7%.
