Economy One by one, what are the price increases that will arrive in February - Infobae

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One by one, what are the price increases that will arrive in February - Infobae


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Uno por uno, cuáles son los aumentos de precios que llegarán en febrero

Qué rubros registrarán subas en el segundo mes del año y cómo podría impactar sobre la inflación; qué pasará con las tarifas de los servicios públicos

www.infobae.com

January 31, 2024

What items will register increases in the second month of the year and how it could impact inflation; what will happen to utility rates


Since November, fuel prices have accumulated a rise of 140%. (Freepik)

With estimates that are around 20% inflation for January, new increases arrive in February that will put more pressure on the pocket. There are some increases that are on hold.

Prepaid​

Prepaid medicine companies have already informed their members of an increase of between 27% and 29% in fees after the 40% increase in January following the Decree of Necessity and Urgency (DNU) 70 of 2023, which eliminated the cap for raise prices. Companies seek to make up for the delay resulting from previous freezes in parallel with strong increases in inputs.

Subways and metro​

As of February 4, in the City of Buenos Aires, the second tranche of the 56% increase set by the Buenos Aires government for the subway fare will be applied. The ticket will go from $110 to $125. While the premeter will increase to $43.75.

Rentals​

Despite the repeal of the Rental Law, tenants with contracts signed between July 1, 2020 and October 17, 2023 will have to face increases of around 147%. This increase arises from the Lease Contract Index (ICL) which is measured based on inflation and salaries.

Telecommunications​

Telephone, cable and internet provider companies will apply the second increase of the year with an increase that exceeds 25%, depending on the service and the operator.

Oil​

In February, the freeze on the fuel tax in force since 2021 expires, the extension of which had been ordered in November of last year by the former Minister of Economy, Sergio Massa . This would result in a new increase in fuel prices that adds to the 27% in January. Since November, fuel prices have accumulated a rise of 140%.

According to the Argentine Institute of Fiscal Analysis (IARAF) , if the national fuel tax is updated, prices could rise by 25%.

“The real value of the tax fell by 85% between December 2018 and December 2023. Monthly collection fell by 77%. The Nation could raise extra resources for 0.37% of GDP and the Provinces for 0.15%,” the president of the IARAF, Nadin Argarañaz, said through X.

Buses and trains​

The increases for buses and trains were put on hold due to a court ruling. In detail, the Federal Civil, Commercial and Administrative Litigation Court No. 3 of Lomas de Zamora, and in response to an appeal for protection presented by the mayor of Esteban Echeverría, Fernando Gray , suspended the call for the public hearing held by the Secretariat of Transportation that depends on the Ministry of Infrastructure of the Nation to discuss a new fare table for trains and buses.

The court argued that the adequate citizen participation procedure required by law for the hearings was not guaranteed.

“It is unusual that they have converted the public hearing on the transportation increase into a web form in which you make a comment of up to 5,000 characters and participation ends. In this way, they cancel any instance of exchange and debate, and turn the hearing into a network post. "You cannot face a process that will affect the income of millions of families without the citizens' backs," said Gray.

And he added: “I am very concerned about the tariff scheme proposed by the national government. It increases the cost of bus tickets by 251% and train tickets from 169% to 247%, depending on the line.”

The government sought to raise the minimum bus fare from $76.92 to $270. In the case of trains, the ticket would vary between $130 and $208 for all branches.

This situation occurs in an already conflictive framework due to the dramatic situation of collective companies due to the increase in costs and salary claims from the sector's union.

Public services​

Regarding public services, the Government is advancing in the definition of electricity rates , while it postponed the increase in gas bills, originally scheduled for February after the first public hearing was held on January 8. In principle, the new tariff schedule will be for March.

The decision is related to the fact that electricity rates explain 70% of energy subsidies. Moving quickly in this segment will mean greater savings for the State. In addition, the Secretary of Energy, Eduardo Rodríguez Chirillo , anticipated the increases that gas rates could have and generated a strong impact.

The official had assured that the PIST price of gas - the average cost between producing gas locally and importing it - would go from USD 0.7 per million BTU (the unit of measurement for gas) to USD 4.