The persistence of inflation at high values continues to deteriorate the income of the vast majority. This Wednesday, INDEC reported that the cost of the products that make up the basic food basket (CBA) went up 5.2% in JuneTherefore, a family group made up of two adults and two minors needed to receive income for $ 104.227 so as not to fall into destitution. For her part, the total basic basket (CBT), which in addition to food includes clothing and transportation, marked an increase in 6,7 % in the same period, for which the same family group needed to have income for $ 232.426 so as not to fall below the poverty line.
The variations of the CBA and the CBT were 124.0% and 123.0%, in interannual terms, and accumulate in the year increases of 55.1% and 52.4%, respectively so far this year.
— INDEC Argentina (@INDECArgentina) July 19, 2023
The amounts of these baskets are questioned for starting from a diet that does not meet current standards to be considered healthy and for not incorporating expenses that may be unavoidable such as rent. The ATE-Indec workers make a minimum consumption basket taking these problems into account and for the month of mayo they estimated it at $ 298.967.
In the last twelve months, food prices climbed 116.9%, standing above the general level (115.6%). This increase has a stronger impact on the lower income sectors. In the first six months of the year (January to June) the rise in food was 55.6%, also above the general level (50.7%).
The Minister of Economy, Sergio Massa, is content with the slowdown in inflation ahead of his presidential candidacy, but the rates at which living costs are rising continue to be alarming, in a country whose latest poverty measurement reaches 40% of the population.
The Government is responsible for the strong inflation for throwing more gasoline on the fire by authorizing increases in public services, fuel and health. It also continues to renegotiate with the Fund, the agreement with the agency is a “model” of high inflation since the rise in prices is the mechanism to adjust the budget, items such as health, education, retirement; and the income of the working majority.
There is no possibility of stopping the inflationary adjustment under the program with the IMF, while what is scarce are currencies, and that puts pressure on prices, the Government’s objective is aimed at accumulating dollars to pay the debt.