Argentina: Inflation Resumes Its Decline, But . . .

[Tango]

Inflation is going down but still high.

INDEC reveals Argentina's 2024 inflation rate: 117.8%

Annual inflation nosedives in boost for Milei; Prices rose 2.7% last month, reports INDEC; Bureau’s data shows inflation fell almost 94 points year-on-year.

batimes.com.ar

 

[Problema]

Inflation is going down but still high.

INDEC reveals Argentina's 2024 inflation rate: 117.8%

Annual inflation nosedives in boost for Milei; Prices rose 2.7% last month, reports INDEC; Bureau’s data shows inflation fell almost 94 points year-on-year.

batimes.com.ar

So Argentina is essentially back to Macri and CFK levels of inflation (25%-50%), yet with none of the perks as inflation refuses to go below 2.5%/month.

So Milei and Caputo destroyed the economy for what? Food/housing to be way out of sync with people's incomes, fake poverty statistics. For things in Argentina to cost more than they do when exported abroad, taxes to be higher than under Alberto and Massa, etc.

I really don't understand the backslapping and self-congratulations because there isn't really anything worth celebrating unless you own stock in YPF or Edesur or banking stocks.

 

[LongIslander]

It is a good thing that inflation is going down but how much of this is real? After all, once the peso is eventually devalued (which everyone agrees it must come down) isn't inflation just going to go back up? After all, who really thinks the value of the peso is real?

I am spending the same in many restaurants that I do back home. I don't think this is sustainable without crashing again. To make it worse the currency controls look like they will go on all year.

 

[Problema]

It is a good thing that inflation is going down but how much of this is real? After all, once the peso is eventually devalued (which everyone agrees it must come down) isn't inflation just going to go back up? After all, who really thinks the value of the peso is real?

I am spending the same in many restaurants that I do back home. I don't think this is sustainable without crashing again. To make it worse the currency controls look like they will go on all year.

Correct. Inflation will probably be at least 30% to 35% this year. What else is left to cut?! Argentina isn't the US. We are a developing country yet our prices are higher than developed nations where people are making 4X more salary.

Utility prices have skyrocketed. Electricity is 500% more. Even this summer with milder temperatures the power goes out because no investments are made in the infrastructure even though they are charging 4X more. Cepo still in place. Taxes have not come down. Imports still have IVA and outrageous shipping charges.

Only people that benefit are the wealthy. They did the blanqueo and got to launder $100,000 bucks tax free. I know people that brought it in and then withdrew it and then deposited the same money for $200,000 bucks tax free. No one can tell me what is better today vs. when Milei started. So yeah inflation came down but some things are 3X more.

 

[earlyretirement]

Food prices in Argentina experienced a significant increase in the third week of January 2025. According to the report by the consulting firm LCG, food prices registered a 0.9% increase during this period. This weekly increase contributed to a total accumulation of 2.6% so far this month.

The upward trend in food prices has accelerated compared to previous weeks. This increase has a direct impact on household economics, affecting consumers' purchasing power. Inflation in the food and beverage sector has notably accelerated during this period. If this trend continues, food inflation for January 2025 could shape up to be the highest in the last six months.

The upward trend in food prices remains a concern for consumers and economic analysts.

 

[Billy Goat]

Food prices in Argentina experienced a significant increase in the third week of January 2025. According to the report by the consulting firm LCG, food prices registered a 0.9% increase during this period. This weekly increase contributed to a total accumulation of 2.6% so far this month.

The upward trend in food prices has accelerated compared to previous weeks. This increase has a direct impact on household economics, affecting consumers' purchasing power. Inflation in the food and beverage sector has notably accelerated during this period. If this trend continues, food inflation for January 2025 could shape up to be the highest in the last six months.

The upward trend in food prices remains a concern for consumers and economic analysts.

No matter what they do they can't seem to get food prices to stop going up. They are struggling to get inflation under 3% a month. And on many things it is going up more than that.

 

[BuySellBA]

🇦🇷Recent data from the National Institute of Statistics and Census (INDEC) in Argentina shows the following trends:

Wholesale Prices

🗓️Monthly Increase: In January 2025, wholesale prices rose by 1.5% compared to the previous month, exceeding the 0.8% increase recorded in December 2024.

📈Year-on-Year Increase: The year-on-year increase reached 43.8%, which represents a slowdown compared to the 67.1% of the previous month.

Causes of the Increase: The rise was mainly due to increases in domestic products (1.6%) and imported products (0.5%). Within domestic products, notable increases were in electricity (3.6%), primary products (2.1%), and manufactured goods (1.4%).

Construction Costs

📈Monthly Increase: In January 2025, construction costs increased by 0.9%, below the general CPI and the ICC of December.

📈Year-on-Year Increase: The year-on-year increase was 67.1%, although January saw a slowdown compared to the previous month.

Components of the Increase: The increase was explained by rises of 1.2% in materials and 2.7% in general expenses, while labor costs increased by only 0.2% due to wage agreements.

These figures reflect the current economic dynamics in Argentina, with persistent inflation but signs of slowdown in some sectors.