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Argentina's inflation once again exceeded that of Venezuela in May: it was the highest in the region - Infobae
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La inflación de la Argentina volvió a superar a la de Venezuela en mayo: quedó como la más alta de la región
Así surge al comparar los datos del Observatorio Venezolano de Finanzas y los de las consultoras argentinas respecto del mes pasado y del último año
www.infobae.com
June 05, 2024
This emerges when comparing the data from the Venezuelan Finance Observatory and those from Argentine consulting firms regarding last month and the last year.
By Martin Kanenguiser
File photograph of a woman while shopping in a supermarket in Caracas (Venezuela). EFE/ Miguel Gutiérrez
Inflation in Argentina once again exceeded that of Venezuela in May, according to data from private consulting firms in both countries. In this way, Argentina became the leader in inflationary terms in all of Latin America, both in monthly and interannual terms.
The Venezuelan Observatory of Finance (OVF), an independent body of the government of Nicolás Maduro, reported that “inflation in May 2024 was 3.9%, a rebound compared to the previous month when it registered 2.9%.” Furthermore, he stressed that “the accumulated rate reaches 15.3% and year-on-year inflation reaches 78%,” in the country that experienced hyperinflation for three years.
The OVF detailed that “the items most affected by inflation were services (7.2%), communication services (6.8%) and education (4.4%). All services increased in the month of May: 18.2% in electricity service; 16.7% of the Water service; cleaning and gas services on average increased by 7%; cable TV service 5%; cell phone 14.4% and internet 4%. Regarding the education sector, there are increases in monthly payments for transportation (6%), universities (4%) and schools (24%).” In addition, he indicated that “the food and non-alcoholic beverages category, which has the greatest weight in the indicator's weighting, presented a drop of 1.1%.”
Estimates in Argentina
In Argentina, the projections of private consultants recorded an increase in consumer prices that was between 4.4% and 4.9% last month.In this regard, the survey of C&T retail prices for the GBA region “had a monthly increase of 4.6%, the lowest since April 2022. This allowed the twelve-month variation to drop for the first time since December 2021 to a still very high 283.5%”.
May inflation ECO GO
In part, “the lower monthly variation was due to the government's decision to limit public service adjustments (with the exception of trains), but it also had to do with core inflation, which leaves aside said services and seasonal products, fell to just 2.5%, a rate that has not been recorded since 2020, in the middle of the pandemic.”
“The lack of adjustment in electricity, gas and water favored the housing sector, which had increased 42% in April, to barely rise 2.4% in May,” the Castiglioni and Tiscornia consulting firm clarified.
In food and beverages, “the most weighted item, the price increase was 4.9%, down from 6.8% in April. The drop was not greater because vegetables, a component with strong seasonal behavior, increased 26%. On the contrary, in baked goods, fruits and beverages there were price reductions.”
“The same thing happened in other mass consumption items, such as cleaning products and toiletries. Also in clothing, repeating a usual seasonal behavior,” she said.
“In transportation and communications, the increase in train and subway service in CABA and the adjustments in telephone and internet services stood out,” he indicated.
For its part, ECO GO showed an inflation of 4.9% last month, 72% in 5 months and 290% in a year and for the Latin American Economic Research Foundation, “in the month of May the inflation for the "The City of Buenos Aires, measured by the CPI-FIEL, maintained the downward trend observed since February."
In this way, “the General Level stood at 4.8%, falling five points compared to the rate of the previous month in CABA. In the last 12 months, prices grew by 300.7%. Core Inflation was 5.2% and accumulated an increase of 292.6% in the last 12 months. For its part, Food and Non-alcoholic Beverages grew 6.8% in the month and 349.0% in the last 12 months".
For June, experts want to see if the increase in the dollar in recent days and the reduction in subsidies in public service rates do not once again force an increase in the monthly figure, which, according to the Government, ended in May at 5 %. In any case, this monthly figure is higher than that recorded in the last year by Brazil and Mexico, the other two large economies in the region.
