The June inflation was 4.6%according to the Consumer Price Index (CPI) published this Friday by Indec and in the first six months of the year it has accumulated an increase of 79.8%. Thus, the accumulated increase for the last twelve months reached 271.5%. Despite the economic standstill, inflation rose again. The inflation data is known in the midst of another rise in the parallel dollars, and the blue that touched $1500 this Friday.
The Indec reported that “the division with the greatest increase in the month was Housing, water, electricity, gas and other fuels (14.3%), due to increases in electricity and gas rates and in housing rent. It was followed by Restaurants and hotels (6.3%) and Education (5.7%) due to increases in all levels of education.” That is, the electricity and gas price hikes influenced the rise in inflation and rents thanks to the repeal of the law in DNU 70/2023.
The report indicated that “the division with the highest incidence was Housing, water, electricity, gas and other fuels (14.3%), in the GBA, Northeast, Northwest and Cuyo regions, while in Pampeana and Patagonia it was Food and non-alcoholic beverages (3.0%), where increases in Vegetables, tubers and legumes, Bread and cereals and Milk, dairy products and eggs stood out.”
#DatoINDEC
Consumer prices (#IPC) increased by 4.6% in June 2024 compared to May and 271.5% year-on-year. They accumulated an increase of 79.8% in the first half of the year https://t.co/ez6arJuRAV pic.twitter.com/wgOHMOH8nG— INDEC Argentina (@INDECArgentina) July 12, 2024
The food and non-alcoholic beverages category increased by 3% monthly in June, but in the last twelve months it climbed by 285.1%, above the general level (271.5%). It is a fundamental component in the consumption basket of the lower-income sectors, which spend the majority of their money on food.
The adjustment of Milei and Caputo slowed down the economy, industry and construction collapsed, the loss of wages due to inflation caused a fall in consumption, and tax collection also contracted. Economic activity fell, GDP plummeted 5.1% in the first quarterThis led to an increase in poverty (which reaches 55% of the population), unemployment and inequality.
The “markets”, a euphemism for investment funds, banks, companies, capitalists in general, and financial capital in particular, remain uneasy about the government’s economic direction. The blue dollar has risen again, and despite Caputo’s promises, a new devaluation cannot be ruled out due to pressure from the agricultural employers and the Fund and due to the lack of fresh dollars from the IMF. In other words, inflation could accelerate again. If it materializes, it would be a new blow to the pocketbook of the working people.
Measures such as a Emergency increase for formal and informal workers, unemployed and pensioners and for the Automatic update against inflationno one can earn less than the cost of the basic basket ($873,169 in June, according to Indec).
To combat inflation, it is necessary a program of a different kind with measures such as the nationalization of foreign trade and banking under worker management to combat capital flight and the remittances of profits from large companies abroad that weaken the national currency, and the sovereign’s denial of recognition of fraudulent debt.
Source: www.laizquierdadiario.com
