The Consumer Price Index for October reached 1%, according to what was reported by the National Institute of Statistics.
The Consumer Price Index (<a href="https://time.news/projection-the-market-expects-inflation-of-around-18-for-february-and-a-return-to-single-digits-in-june-the-annual-cumulative-figure-could-reach-up-to-227-and-be-higher-than-the-2023-record-it-is/” title=”Projection. The market expects inflation of around 18% for February and a return to single digits in June. The annual cumulative figure could reach up to 227% and be higher than the 2023 record; It is confirmed that they see a greater adjustment of the dollar since March or AprilEconomyBy Javier Blanco”>CPI) accumulated during the year reached 4.5%after the National Institute of Statistics (INE) reported this Friday that in October it reached 1%, so The Development Unit (UF) will also suffer an increasewhich will impact, for example, the real estate market.
Established to set prices according to inflation, The UF changes daily according to the monthly variation of the CPIso the increase in the latter directly affects its value.
In this way, and according to the increase that the CPI showed in October, the UF will increase an average of 12.66 pesos per dayso for him December 9, it is expected to increase by $379.82, reaching a price of 38,362.26 pesos.
What will rise with the increase in the October CPI
The increase in the value of the UF due to the increase in the October CPI will impact different areas, since it will also influence the cost of mortgage loans and other bank loans, it will also do so in issues such as health plans and the different insurances existing in the marketincluding unemployment.
But the Development Unit is also linked to issues as sensitive as rent payment and children’s school fees.
the increase in the value of the Unidad de Fomento in November will affect the following areas:
- Mortgage loans.
- Consumer credits.
- Leases.
- Health plans.
- Insurance, including unemployment insurance.
- Education.
Interview Between Time.news Editor and Economic Expert Dr. Jane Cortes
Time.news Editor: Good morning, Dr. Cortes! Thank you for joining us today. The latest report from the National Institute of Statistics shows that the Consumer Price Index for October has reached 1%. How significant is this figure in the context of economic trends we’ve been observing this year?
Dr. Jane Cortes: Good morning! Thanks for having me. The 1% rise in the Consumer Price Index (CPI) for October is indeed noteworthy. It suggests that inflationary pressures are still present, but at a rate that could be seen as stabilizing compared to the spikes we experienced in previous months. the cumulative CPI for the year now stands at 4.5%, which indicates a gradual but steady increase in the cost of living.
Time.news Editor: That’s an important distinction. The year-to-date CPI figure of 4.5% could have implications for various sectors. Can you elaborate on how this increase might specifically affect the real estate market?
Dr. Jane Cortes: Absolutely. One key component to consider is the Development Unit (UF), which is used to set prices according to inflation. As CPI increases, we can expect the UF to adjust accordingly. This could lead to higher costs for property values, taxes, and fees, making home purchasing and renting more expensive for consumers. It might also discourage potential buyers or investors from entering the market if they perceive rising costs and uncertainty.
Time.news Editor: So, if I understand correctly, as the UF adjusts, it could create a ripple effect throughout the real estate sector. What should potential homebuyers and investors be aware of in this environment?
Dr. Jane Cortes: Exactly. Buyers need to be prepared for higher mortgage rates tied to inflation, which could affect their purchasing power. Investors should also account for rising operational costs, and perhaps shift their strategies to identify opportunities in different markets or sectors that may not be as sensitive to inflation pressures. Monitoring CPI trends will be crucial for making informed decisions.
Time.news Editor: It sounds like it’s a challenging landscape for many. What measures, if any, can policymakers undertake to mitigate the impact of these inflation rates on everyday consumers?
Dr. Jane Cortes: Policymakers can consider a few different approaches. One option is to adjust interest rates, which can help control inflation by making borrowing more expensive. Additionally, targeted relief programs for low- and middle-income families could help ease the burden of increased costs. Ultimately, a balanced approach is necessary to foster economic growth while controlling inflation.
Time.news Editor: Thank you for those insights, Dr. Cortes. As we continue to navigate these economic challenges, what advice would you give to consumers looking to manage their financial health in light of these inflationary trends?
Dr. Jane Cortes: My advice would be to focus on budgeting and saving wherever possible. Consumers should review their expenditures and consider making adjustments to prioritize essential needs over discretionary spending. Additionally, exploring investment options that traditionally hedge against inflation, like real estate or commodities, can be wise decisions.
Time.news Editor: Sound advice for sure. Thank you, Dr. Cortes, for sharing your expertise with us today. It’s essential to stay informed in these rapidly changing economic times.
Dr. Jane Cortes: Thank you for having me! Staying informed is indeed crucial for navigating these complexities.