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City of Buenos Aires: why inflation in January would have been around 7% and would be higher than that of INDEC

2023-02-04T16:48:55.729Z


The weight of services in the Buenos Aires CPI is much more than in the national indicator. Due to the greater weight of services in the spending of Buenos Aires households, the inflation measurement for January in the City of Buenos Aires would have been around 7%. And the CABA index would once again be higher than the one reported by INDEC at the national level . The Buenos Aires data will be known next week. Last month, again the prices and tariffs of the services and the prices regu


Due to the greater

weight of services

in the spending of Buenos Aires households, the inflation measurement for January in the City of Buenos Aires would have been around 7%.

And the

CABA index would once again be higher than the one reported by INDEC at the national level

.

The Buenos Aires data will be known next week.

Last month, again the prices and tariffs of the services and the prices regulated by the State and the Provinces had

increases much higher than the rest

.

And, as according to the Directorate of Statistics and Censuses of CABA,

services weigh 58.59% in the

general average Index while

at the national level they are around 35%

, the average inflation of Buenos Aires would be higher than that reported by the National Institute.

In the City of Buenos Aires, housing expenses (such as rents and expenses), water, electricity, gas and other fuels contribute 17.43% to the index, slightly more than food (17.13%).

On the other hand, for example, food weighs 35% in the NOA and NEA and expenses related to housing between 7 and 8%.

The same goes for transportation.

In CABA it weighs 11.44% versus 8.41% in the NEA.

Health weighs 8.7% in CABA -due to the weight of prepaid- against 5.26% in NOA.

And Restaurants and Hotels weigh 9.58% in the Buenos Aires CPI and barely 4.96% in the NEA.

What has been happening in recent months is that the

prices and fees for services have been rising above those for goods

.

For example, in December in the City, services increased 6.1% and goods, 5.2%.

Applying the weights, the Buenos Aires index showed an average of 5.8% versus 5.1% of the INDEC at the national level.

A difference of plus or minus 0.7 points.

This was repeated in January due to the

increase in public transport fares, mobile telephone services and the rise in vehicle prices

.

In Health, the increase in

prepaid

(6.9%) and the values ​​of

medicines

and the increases related to

recreation and tourism

stood out .

That is why it is discounted that

Buenos Aires inflation could be close to 7%.

The inflation of these months

is affecting the middle class more

because the Buenos Aires expense structure has a greater impact on services related to that sector: for example, 75% of households are affected by

expenses or rents.

Also for expenses related to

domestic staff, cars or prepaid and private schools.

And also for recreation, culture and meals outside the home.

An exception are the neighborhoods in the southern zone with consumption expenses that are similar to those of the suburbs.

With the skyrocketing price of meat and other foods, it is discounted that in February the indices would be reversed and the INDEC measurement would be higher than the Buenos Aires CPI, shortening the differences and even the inflation indices of recent months could be aligned.

Finally, despite the monthly differences, in 2022 the National CPI was 94.8% and the Buenos Aires CPI was 93.4%.

NE

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Source: clarin

All business articles on 2023-02-04

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