July 7, 2020

Consumer prices in Argentina rise 54.5% year-on-year in August

Consumer prices in Argentina increased 54.5% last August compared to the same month last year, the National Institute of Statistics and Census of the country reported Thursday, immersed in a critical economic situation.

According to the official statistics body, prices registered an increase of 4% in the eighth month of the year compared to last July and accumulated an increase of 30% in the first eight months of the year.

The 4% jump compared to July marks a break in the deceleration trend that the indicator had been showing since last April.

In August the prices of the entire economy were strongly impacted by the rise in the price of the dollar.

The value of the US currency rose suddenly after the primary of August 11, in which the Argentine president, Mauricio Macri, suffered a severe setback 31.79%, about 16 points less than the Peronist Alberto Fernandez, favorite for the October 27 elections.

According to the official report released on Thursday, goods had a positive variation of 4.9% last month compared to July, while services increased 2.3%, data amounting to 59.8% and to 45.7%, respectively, in the comparison with August 2018.

Consumer prices accumulated an increase of 47.6% last year, the highest level since 1991.

The latest private projections that the Central Bank collects and that take into account the effects of the severe financial tensions of August calculate that the accumulated inflation in 2019 will be 55%, more than double the 23% projected in the Budget for this year.

The high inflation in Argentina is in a context of economic recession, with a 2.5% drop in activity in 2018, one of the worst performances in years.

Before the upsurge of the crisis, the Argentine president, Mauricio Macri, announced weeks ago a series of measures, including the freezing for three months of fuel prices, an increase in the minimum wage and the removal of the value added tax to certain foods from the basic basket.

The aggravation of the crisis has increased the protests of social organizations in the streets, where they demand that the food emergency law be extended, which received approval Thursday in the Chamber of Deputies and should now be debated by the Senate.

. (tagsToTranslate) prices (t) consumer (t) Argentina (t) year-on-year (t) August

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