Economy Wholesale inflation was 2% in September and was below the general CPI - Infobae

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Wholesale inflation was 2% in September and was below the general CPI - Infobae​

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La inflación mayorista fue del 2% en septiembre y quedó por debajo del IPC general

Los productos nacionales tuvieron un aumento del 2,3% en el noveno mes del año, pero los productos importados registraron una baja del 1,4%

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October 17, 2024


Domestic products increased by 2.3% in the ninth month of the year, but imported products registered a decrease of 1.4%


File photo - A fruit vendor writes in a notebook at the Mercado Central wholesale market on the outskirts of Buenos Aires. REUTERS/Matias Baglietto

The overall level of the Domestic Wholesale Price Index (IPIM) registered an increase of 2% in September 2024 compared to the previous month. This variation is a consequence of the 2.3% increase in “Domestic products”, partially offset by the -1.4% decrease in “Imported products”.


Among national products, the rise in the price of electricity stood out, with a rise of 4.2% in the ninth month of the year. Meanwhile, primary products had an average variation of 2.3% and manufactured products showed an increase of 2.2%, according to data published by the National Institute of Statistics and Census (Indec).


Wholesale prices have thus accumulated a rise of 61.5% so far this year and have reached an increase of 197.3% in the last twelve months. In all cases, the values are below the advance of the Consumer Price Index (CPI) , which rose 3.5% in September, 101.6% in the accumulated period of the first nine months and 209% in the interannual variation.


(Fountain)

Above average​

While wholesale prices rose by 2% overall, the price variation of some products was well above that figure. Among primary products, the increase in crude oil and gas stood out, rising by 4.6% together.


Among manufactured goods there are also several examples. The rise in September of the “printing and reproduction of recordings” category stood out, with an increase of 6.5%. Also above average were tobacco (5.8%), fuels (4.6%), non-metallic mineral products (2.7%) and textile clothing (2.7%), among other items.


However, while some products had above-average increases, there were a couple that fell in price in September. These were electrical machinery and appliances (-1.8%) and basic metal products (-1.7%), always referring to transactions in the wholesale market.

Strong construction sato​

The construction cost index in Greater Buenos Aires (ICC) did not show the same behavior as the wholesale price market. According to the INDEC, the cost of construction increased 4.9% in September, a value that was above the general inflation of that month (3.5%).

In the cumulative period from January to September, the ICC increased by 72.7% and in the last twelve months it has risen by 169.6%.


File photo showing a worker working on a building in Buenos Aires (Argentina). EFE/Juan Ignacio Roncoroni

The September increase was a consequence of a 1.7% increase in the price of materials, a 5.8% adjustment in general expenses and an 8.2% increase in labor. At this point, it is important to note that the "Labor" chapter incorporates the new values established by the wage agreement of the Construction Workers Union of the Argentine Republic (Uocra) , dated August 21, 2024, applicable to the labor categories provided for in Collective Labor Agreement 76/75 from September 2024. Likewise, the increase in labor categories impacts the "General expenses" chapter, because it contains the item "Sereno", which is framed within the resolution.

For its part, general expenses also include the new tariff values that the National Electricity Regulatory Entity (ENRE) approved in the electricity rates as of September 1 for distributors Edenor and Edesur , within the framework of the comprehensive tariff reviews of both companies.

In the analysis by work item for September, compared to the previous month, the largest increases were observed in “Earthmoving” (9.3%), “Masonry” (6.7%), “Structure” (5.6%) and “Other work and expenses” (5.3%), and the smallest increases in “Sanitary and fire-fighting installation” (1.6%), “Gas installation” (1.5%), “Glass” (1.5%) and “Metal carpentry and ironwork” (0.5%).