Argentina: Skyrocketing food prices threaten gov't inflationary targets

Argentina: Skyrocketing food prices threaten gov't inflationary targets

Argentina is experiencing a sharp increase in food prices, complicating the government's goal of keeping inflation close to 2%. Private consulting firms report that food prices rose by approximately 3.2% to 4% so far this month, with total inflation projected to be between 2.4% and 3%. Key drivers include dairy and eggs (up 5.8%), meat (up 5%), vegetables (up 3.3%), and beverages (up 2.2%).

"The reality at the counter is different from the Indec numbers," said Germán Romero, president of the entity. He stressed that there were items that went up by 7 percent and questioned the way the Indec measured.

They pointed it out from the olive groves sector of Olavarría, they indicate that sales in the retail trade fell by 15%. After knowing the percentage of inflation by the INDEC, in the local gondolas the price increases triple that number. For Julio De Felice, of the grocers sector, said that “inflation never stopped” and spoke of rises of between 5% and 10%. “The number they manage always has different parameters, but if you put food in it never…

Victor Palpacelli, president of FASA (Federación Argentina de Supermercados y Autoservicios), spoke in "Ponete al Día" and analyzed the prices of the first quarter.

The prices do not slow down at the rate expected by the government and in March the CPI would have closed above 2.5%. It represents more than twice the rate of depreciation of the weight imposed by the government, and explains why the majority of experts warn of the exchange rate delay. The government has been betting on monthly inflation of close to 2%. And President Javier Milei even predicted that in the second half the cost of living will fa…

It ends the third month of the year and there are expectations about inflation. In the case of La Plata, the FundPlata Foundation works with measurements of the basic food basket with samples that are given in the last days of each month. How does the trend come?