2023-12-23 22:16:22
The economic situation in Argentina continues to worsen and, after the victory of the far-right Javier Milei, prices and inflation continue to be unleashed to exceed a new weekly record. If in November prices increased by 13% compared to October, the forecast for this December is even worse, with average increases of 30%. Fuels, food and beverages are the main products affected, with increases of up to 160% in five days.
Milei, however, affirms that he will continue to apply the liberalization of prices, one of the causes that experts point to after this exorbitant increase.
The second week of December closes in Argentina with a “record” rise in prices. The LCG consultancy, for example, has calculated that in less than a week prices have risen by 5.4%. So far this month, the rise in prices has already reached 27%. EcoGo consultancy calculates that food and drinks will rise to 33.2% at the end of December. This consultancy has noted how, in just one week, there are food prices that have risen by 90%. Compared to a year ago, the price increase triples to 200%.
In fact, this week half of the products on sale have increased their prices. On average, the ones that have risen the most are vegetables (18.6%), meat (16.8%), fruit (15.3%) and oil (14.4%). Meat is crucial in a country with an important tradition of consumption and in the midst of Christmas. Wholesale beef rose 41.5%, and 20% more to customers. Pork grew by 17% in just one week.
The president of the Federation of Storekeepers of the Province of Buenos Aires (FABA), Fernando Savore, noted that this week wholesalers have received products with “increases of between 30% and 50%”. According to Savore, this week the kilo of rice has risen by 160%, and sugar and flour by 50%. “We depend on the customer’s purchase, if we run out of pocket very quickly it will make our daily sales difficult,” he warned.
The apple registered an increase of 25%, citrus fruits 12.7% and potatoes 3.2%. Although drinks have registered an increase of 2.9% this week, they have already accumulated a rise of 237% since the beginning of the year. In the second week of December, carbonated drinks increased in price by 25%. Beer, 14%.
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Impact of fuel
The causes of this acceleration, according to experts, lie in the devaluation of the peso and the measure of price liberalization that the new president has applied. It has especially affected fuels, which until now were controlled, but which this week have risen to 130% (the previous one they already did by 60%). This increase in transportation has boosted the whole economy because of the cascade effect in the distribution process. Milei stated that his policies will continue in the same direction and that inflation will rise between 20% and 40% monthly in the coming year.
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