Ema
Member
Argentina's inflation tripled that of Venezuela in the last year - Infobae
Source:
La inflación de la Argentina triplicó a la de Venezuela en el último año
Así lo indican las estimaciones privadas de ambos países del último año; además, el país del norte sudamericano registró deflación en febrero, frente al 16% calculado por las consultoras locales
www.infobae.com
March 07, 2024
This is indicated by private estimates from both countries for the last year; In addition, the northern South American country registered deflation in February, compared to the 16% calculated by local consulting firms.
By Martin Kanenguiser
Inflation in Argentina tripled that of Venezuela in the last year REUTERS/Matías Baglietto
Argentina's inflation tripled that of Venezuela in the last year. The country governed by Nicolás Maduro had a drop in prices last month, while in Argentina – although declining compared to previous months – the price index remains at a very high level.
The divergence between both nations is increasing and Venezuela, after its hyperinflation, already has a double-digit annual rate, while Argentina will repeat a three-digit rate this year, despite the fact that analysts moderated their forecast for the end of year up to 210% in December.
In fact, the Government publicly celebrates the decrease in monthly data, but privately they clarify that to determine if it is a trend, we must wait until the first semester closes. Still, they clarify, price volatility is too high and it remains to be known, among other factors, how the exchange rate will continue and what will be the impact – direct and indirect – of the sharp increase in public service rates, both in the residential users as well as in businesses and industries.
Inflation in Venezuela OVF
This conclusion follows from data from the Venezuelan Finance Observatory (OVF), which showed that in February Venezuela registered a deflation of 0.5% and an interannual inflation rate of 85%.
Meanwhile, private measurements – and the Government forecast – indicate that inflation last month was around 15%, which would bring inflation for the last 12 months closer to 290%.
The OVF indicated that last month's deflation “although punctual, had not been observed in many years. Among the factors that explain this drop in prices are the nominal appreciation of the exchange rate of 1.2%, with the dollar price going from Bolívares 38.42 to Bolívares 37.96, due to the Bank's greater foreign currency sales. “Central of Venezuela.”
Also, “to the smallest emission of money by the Issuing Institute.” In addition, the OVF stressed that "during February in the food category, which is the one with the greatest weighting in the index, some sales and offers were observed in some consumer goods as an expression of the weakness of demand and the fall in consumption." .
In this way, he specified, "at the national level, food prices decreased 3.1% and the same thing happened in the transportation of taxis and other means of individual mobility."
However, “the communications category registered an increase of 1.9% and 1.7% in entertainment; For its part, in household equipment and clothing and footwear, prices increased by 1.4%.” At the regional level, “deflation was reflected with 0.1% in the Caracas Metropolitan Area, 1.3% in Anzoátegui and 0.6% in Nueva Esparta, while in Zulia prices increased slightly by 0.1%” concluded the observatory that measures prices independently of the Maduro regime.
Economist Hermes Pérez specified that “the loss of price momentum, a good thing, is due to less monetary financing to the treasury. In 2024, it has fallen 23% and 68% in one year.” In this way, Argentina consolidates its leadership in global inflation, above Lebanon (177% in one year) and Venezuela.
The other countries
In fourth place was Türkiye with 67.1%. According to international news agencies, the Central Bank of Turkey's estimates for 2024 indicate an average inflation of 36% for this year and 14% for 2025.Not only in Venezuela are there doubts about the official figures: in the country governed by Erdogan, the Inflation Research Group (ENAG), made up of independent academics and economists, indicated that inflation reached 122%.
Among developed countries, France (2.9% in one year), Spain (2.8%) and Italy (0.8%) have already reported their inflation for last month, while in Latin America the regional ranking led by the Argentina and Venezuela left Uruguay third (4.7%) in the last year, Mexico 4.4%, Peru 3.2%, Paraguay 2.9%, Bolivia 2.5% and Ecuador 1.4%.
Inflation in February ECO GO
In Argentina, consultants estimated a price increase of 16% and President Javier Milei anticipated that it will be around 15%. Indec will release the data next week.
According to ECO GO, the price increase was 286% in the last year, 37.3% in two months and 15.9% in February. In particular, in food and beverages the increase was 13.9% in February and 327.6% year-on-year. Then the health sector was located with 279% in 12 months due to the increase in the fees for prepaid medicine and clothing with 262%, in a true reflection of the strong dispersion of prices in the economy that could just see some light in 2025, with inflation projected around 60%
