On Wednesday the 14th, the INDEC is set to release inflation data for January. According to analysts, prices rose between 20% and 23%. While this was slightly lower than December’s 25.5%, there was still a small deceleration in the third week of the month.
The government of Buenos Aires provides a first glimpse into what happened in the city during January with their inflation rate of 21.7%, which was the highest since 2012. The interannual variation of the index amounted to 238.5%.
Economist Rocío Bisang from EcoGo predicts an inflation rate of 21.2% for January, citing factors such as rising healthcare costs and transportation expenses, particularly gasoline and train and bus fares. Meanwhile, Lorenzo Sigaut Gravina from Equilibra expects preliminary data for January to be lower than that for December, with a forecast of 22.5%.
Despite wage growth falling behind price increases, consumers were able to curb their spending due to falling purchasing power. This led to a slowdown in inflation rates in January, as reflected in declining demand for cars, shopping malls, supermarkets, gasoline and retail stores.
According to a study by Ferreres & Asociados based on over fifteen thousand prices of GBA goods and services, inflation in January is expected to end close to 18% monthly with an interannual growth of 244.5%. Core inflation advanced at a monthly rate of 19.5%, which represents an increase of 268.8% annually