December inflation was 2.7% monthlythus registering an increase of 0.3 percentage points compared to the 2.4% in November, as reported this Tuesday afternoon by the National Institute of Statistics and Censuses of the Argentine Republic (Indec). The government’s celebration of the slowdown did not last long, while it allowed the rise of regulated prices and rates that rose 3.3% monthly.
Housing, water, electricity, gas and other fuels It was the sector with the greatest increase in the month (+5.3%), due to increases in housing rents and services such as electricity, gas and other fuels. He followed Communication (5.0%), due to increases in telephone and internet services.
#DatoINDEC#IPC: The division with the highest monthly increase in December 2024 was Housing, water, electricity, gas and other fuels (5.3%), followed by Communication (5%) https://t.co/95C0jwcsWR pic.twitter.com/vuqTWAVvR2
— INDEC Argentina (@INDECArgentina) January 14, 2025
The two divisions with the smallest variations last month were Clothing and footwear (+1.6%) y Home equipment and maintenance (+0.9%). The sector with the highest incidence at the general level was Food and non-alcoholic beverageswhich had a monthly increase of 2,2%accelerating strongly again after giving 0.9% in November.
In it year 2024 The Consumer Price Index (CPI) thus accumulated an increase of 117,8%leaving behind popular salaries and incomes that faced a profound deterioration in purchasing power. Food and non-alcoholic beverages recorded an increase of 94,7% in 12 months, while Housing, water, electricity, gas and other fuels registered an increase that more than doubled the average, reaching 248.2% in one year and Communication other 186,4% in the same period.
It is not surprising that immediately the Minister of Economy, Luis Caputohas published a favorable interpretation of the data on its social networks, seeking to embellish a result that demonstrates once again that the economic scheme is very weak and that the government has favored a group of privatized service companies with higher rates and the deregulation of services. prices.
“This occurs in a month in which the index presents a positive seasonality, linked to the holidays and the beginning of the summer vacation period, and in a context where both economic activity and the real income of the population present a strong recovery,” Caputo said. But as shown in the main increase items, it is the regulated prices that pushed the average prices up the most. That is, those prices that the government must authorize increases.
And he added: “The interannual variation of the National CPI was 117.8% yoy, being the eighth consecutive month of deceleration in comparison with the same month of the previous year, and contrasting with the 211.4% inflation recorded in 2023. “It should be noted that the inflation announced today was the lowest for the month of December since 2018.”
For its part, year-on-year inflation of almost 118% in 2024 is below the extremely high rate of price increases of the previous year (211.4%), but remains one of the highest levels in recent decades. It is the second highest in the last 8 years recorded by the Indec series, and is well above the average of 79.7%.
So far in Milei’s government, the wages of the entire working class, formal and informal, they lost 3.9% in October 2024 in relation to November 2023.
The decline is uneven depending on the sectors, informal and public workers are the most affected. The purchasing power of the formal private sector was 0.3% behind its level in November 2023 in October. In relation to October 2015, the drop is greater: -23.8%.
Meanwhile, in the public sector (at all levels) the purchasing power of the salary showed a collapse in October of 14.8% in relation to November 2023. The drop in relation to 2015 is 39.6% (October 2024 versus October 2015).
Inflation slowed down, but it is undervalued due to the methodological outdatedness of INDEC and if it were updated it would be higher. This also has consequences on the fall in purchasing power, meaning that the fall in purchasing power would be greater. According to a CEPA report, in September compared to November 2023, if inflation measured with the ENGHo 2017/8 were used, the real wage losses would be: -9.1% in the registered private sector, -22.5 % the public, -27.2% the unregistered. There is nothing to celebrate.
Source: www.laizquierdadiario.com
