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Ten foods that accumulate increases of more than 100% in a year

2023-02-23T11:10:40.656Z


High inflation has an impact on food items in the basic food basket, and the currency's nominal value is at its lowest level since hyperinflation.


Inflation in January, which marked a rise of 6% and 98.8% year-on-year, according to INDEC, showed that

some basic foods in the food basket suffered increases above the general level of the price index (CPI

).

It is not precisely about too exotic products: for example, flour increased 154.92%; sunflower oil, 116.47;

milk, 146.95% and eggs, 164.74%, among other examples.

Among the foods that tend to have a greater presence in homes, the following stand out: French bread (flute type), which last month cost an average of $435.66 per kilo in Greater Buenos Aires;

the firm yogurt that went from $125 to $155 in the same period;

pategras cheese, which accumulates an increase of 104.67%;

stew dry noodles, with increases of 158%;

frozen hamburgers (135.97%) and dulce de leche, which, according to official records, became more expensive by 164.74% in the last year.

These increases are also above the purchasing power of consumers, who -month by month- see their income deteriorate since they do not rise with the same intensity as inflation.

In the last year, the real loss of wages -on average- was -3.7 points.

To graph another facet of the inflationary impact, the Focus Market consultancy showed in a survey, 10 products that in 2022,

people could buy (and even get change) with a $1,000 bill and today it is no longer enough.

“If two years ago we bought a 3-liter sunflower oil or a 360gr package of chicken batter with a bill of the highest denomination, they would give us change of $160 and $500, respectively.

However, now to buy the same products we must have, in addition to the full $1,000 bill, $800 more to buy the oil and $200 more to buy the package of chicken batter," the report stated.

In this regard, Damián Di Pace, director of the consultation, explains that "the loss of purchasing power of our currency

is accelerating and the nominal value of the currency is at its lowest level since hyperinflation,"

he says. "Argentines increasingly require more number of bills to carry out the same purchase mission. In fact, a purchase that in 2022 was made with 1 $1000 bill today requires 3 or 4 additional bills".

According to Di Pace, the macroeconomic fundamentals are several: “the current fiscal deficit is financed with monetary issuance and more debt placement in pesos in the market.

This is generating more future uncertainty and in the present

the banknote loses confidence, increasing its speed of circulation.

The Argentines get rid of the peso at a faster rate despite the fact that the Government aspires to them with more debt placement, "he points out.

The high inflationary impact on pockets is, in turn, directing 

buyers towards channels where prices are more convenient.

In this sense, each month it becomes more evident, according to private surveys, that consumption is growing within supermarkets, where Fair Prices are available, credit card promotions and payments with loyalty cards from the same chains. , among other stimuli.

A recent report from the consulting firm Scentia, with data for the month of January, highlights that,

unlike the behavior between channels, it continues to deepen.

While supermarkets had a positive performance of 7.8%, in that month, independent supermarkets or local businesses, which do not have access to these benefits and have less bargaining power with their suppliers, suffered a decline of 9.1%. .

Thus, the balance for January

was an average drop of 1.6% for the entire market compared to the same month in 2022.

As explained by Osvaldo del Rio, director of Scentia, the progression of a marked difference between both channels

began in July 2022 and continues until today

.

And he adds: “the comparison bases are part of the explanation for this trend, among other reasons.

Unlike what was seen in 2022, there is no significant difference in what happened in AMBA versus the Interior of the country, since the result of mass consumption sales is similar between both regions.

Regarding the behavior of inflation in businesses, according to the consultant, "

the weighted average price maintains the acceleration seen in past months, reaching 98.7% in this period

versus the same month of 2022," del Rio clarified.

Source: clarin

All business articles on 2023-02-23

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