Wholesale Inflation Decreases for Third Month in a Row: Domestic Wholesale Price Index Slows Down, Promising Single-Digit Inflation in April

In March, the Domestic Wholesale Price Index (IPIM) showed its third month of slowdown, with a 5.4% decrease compared to February. This was below the Consumer Price Index (CPI) of 11% reported by Indec last month. The data supports the Government’s assertion that inflation will be in single digits in April. The IPIM measures the average evolution of prices of products of national and imported origin in the domestic market, excluding the value of exports in the calculation of relative weights for each activity.

The general level of IPIM increased due to a 6.2% rise in national products, partially offset by a 1.7% decrease in imported products. This is a key indicator for the decrease in the cost of living, according to the organization that reported this on Wednesday. The interannual variation was reported at 330.6%.

Wholesale inflation showed its third consecutive month of deceleration, following the peak of 54% in December, reaching 10.2% in February and 18% in January. The first quarter closed with a 37% increase. The IPIM measures the average evolution of prices of products of national and imported origin in the domestic market, excluding the value of exports in the calculation of relative weights for each activity.

The Basic Domestic Price Index (IPIB) showed a 4.9% increase in the same period, with a 5.6% increase in domestic products partially offset by a 1.7% contraction in imported products. The IPIB does not include tax effects mentioned in IPMI, making it an alternative analysis indicator that distinguishes price movements resulting from changes in tax policy from those resulting from producer decisions