This Wednesday, the National Institute of Statistics and Census published the Price Index (CPI) corresponding to August, confirming a monthly variation of 1.9%. After 3 consecutive months on the rise, the index was at the same level as last month. The intervention of the government dollar as an inflationary anchor, which is generating a daily bleeding of currencies, and the fall of consumption product of the recession, are some keys to understanding the number that the body disseminates.
On the other hand, the government delay in the methodological update of the index, which underestimates the portion of spending on services (the ones that increase the most) also explains the low index. In that sense, an item to highlight are the variation of rent for rent (with a growing trend of less owners and more people renting), where interannual indices quadruply at the general level that was 33.6%.
#DatoINDEC#IPC: The division with the highest monthly rise in August 2025 was transport (3.6%); and the only one with leave, clothing and footwear (-0.3%) https://t.co/n0t9fc8fsg pic.twitter.com/AiJoEedShr
– INDEC Argentina (@indecargentina) September 10, 2025
One of the main prices anchors are the income of the great majorities. The growing indebtedness of households to finance the consumption of basic goods is a direct consequence of the loss of purchasing power of popular income. Salaries with frozen peers and retirement in line with the demands of the IMF are part of the government measures package that especially affects the most vulnerable sectors.
Despite working extensive days or in different works (multiple), reaching the end of the month is impossible. The latest data from INDEC showed that almost 50% of purchases in supermarkets are made by credit card.
After the defeat in the Buenos Aires elections, the government left what price of the dollar rises above $ 1,400. Political and economic weakness is the largest facing the ruling party since its assumption and uncertainty for the coming weeks is very high. This Wednesday the Ministry of Economy renewed debt instruments in pesos without having to raise interest rates; A little respite in the middle of the storm, but the same devaluation was helpful when making a little less attractive buy dollars.
The economic model of Milei and Caputo benefits the speculators, the large economic groups, while attacking wages, retirements and increases the misery of the popular sectors. A brutal adjustment aligned with the demands of the IMF.
Source: www.laizquierdadiario.com
