On Wednesday, January 14th, the INDEC will release the inflation data for the month. According to experts, inflation rates ranged from 20% to 23%. The level remained below December (25.5%), with a slight slowdown in the third week of the month.
The City of Buenos Aires has provided the first indication of what happened in January with its inflation data. In the Buenos Aires area, increases were recorded at 21.7%, which is the highest since the beginning of the statistical series in 2012. The interannual variation of the index was recorded at 238.5%.
Economist Rocío Bisang from EcoGo estimates that inflation in January was 21,2%. She highlights that “the month was very marked by the drag left by December’s increases.” In Health and Transportation sectors, there were significant price increases due to prepaid bills and gasoline and train/bus fares respectively.
Lorenzo Sigaut Gravina, director of Equilibra consulting firm, forecasts a lower preliminary inflation rate for January compared to December (at 22,5%). He attributes this decline to slower demand for goods and services across various sectors such as cars, shopping malls, supermarkets, gasoline stations and retail stores.
According to a study by Ferreres & Asociados based on over fifteen thousand prices of GBA goods and services, January’s inflation rate would be around 18% monthly with an interannual growth rate of approximately 244.5%. Core inflation advanced at a monthly rate of 19.5%, marking an increase of about 268.8% annually – highlighting falling purchasing power due to wages not keeping up with rising prices which acted as a brake on remarketing leading to slower pace of inflation in January as reflected by decreased demand across various sectors including cars and retail stores among others .