Food and beverage inflation continued to accelerate, reaching 7.7% in the last week

Food and beverage inflation continued to accelerate, reaching 7.7% in the last week

According to some consultants, the March monthly average in this area will close by 5.4%; In 2022, headline inflation will be 60% to 65%.

With more than 4% increase, dairy and meat products explained the weekly increase by 2 percentage points
With more than 4% increase, dairy and meat products explained the weekly increase by 2 percentage points

The declaration of war and recent measures by the national government would not affect the easing of food and beverage prices, which averaged 2.89% last week, up 0.46 percentage points from the previous seven days.

According to the index regularly prepared by the consulting firm LCG for this category of mass consumption, The average increase in food and beverage over the last four weeks was 5.4%, while measured from end to end in the same period was 7.7 per cent.

“Our measurements of food were high last month, but they did not reach 7.5%, according to Indec. Even this time. “This means that the accumulated inflation of food will be from 10 to 15% in two months, closer to 15%, which gives between 25 and 30% of inflation in the first semester,” he explained. ᲔᲠᲘ LCG CEO Guido Lorenzo and argued that these data increased his inflation forecast for the whole year. “We have to see if the international context helps us in the second half of the year. We have an overall inflation rate of 60%, but we adjust it to 65%. “Because it all happened in exchange for services and without counting exchange rate movements,” said the economist.

In both cases, rising above 4%, dairy (5.5%) and meat (4.2%) explained the weekly increase by two percentage points. Bread products, cereals and pasta (2.2%), sugar, honey, sweets and cocoa (1.9%), fruits (1.5%), vegetables (1.5%), beverages and home infusions (1.1%) were below average. Ready-to-take dishes (0.8%) and oils (0.8%).

Baked and dairy products lead the way in the average monthly inflation with 7.9%, followed by dairy products and eggs (6.1%), meat (5.9%), vegetables (5.5%). Beverages and infusions at home (5%), oils (4%), spices and other foods (2.7%), fruits (2.4%), sugar, honey, sweets and cocoa (1.8%) and ready-to-eat meals (1, 7%).

Meanwhile, according to the latest research by consulting firm EcoGo, which corresponds to the third week of March, the inflation of food consumed at home will also rise to 5.4% this month. While the overall index will be 5.7 percent (one point higher than in February).

“Companies’ search for possible negative consequences for their profitability was compounded by the rise in the price of raw materials as a result of the Ukraine-Russia war and the effect of a second round of growth in regulated goods. [como los combustibles]”Inflation in major basket products has pushed up by 4% this week alone,” they told EcoGo in the third week of March.

Meat showed an increase of 3.3%, especially beef (5.1%), which was caused by an increase in rear (5.9%) and front (5.1%) cutting. In this respect, dairy products and eggs also showed an increase of 4.6%, which is due to eggs (13.9%) and milk (7%).

The category of baked goods, cereals and pasta showed the largest variability of the week and reached an increase of 8.3%, with the main products such as fresh bread (15.3%), sweet cookies (6.2%) and noodles dry (3, 7%). Drivers.

Fruits and vegetables again showed significant growth of 4.7% and 3.1%, respectively, with distinctive citrus (11.8%), apples (7.5%) and potatoes (2.4%).

“Food and beverage inflation is generally the most representative point of the CPI, and it raises inflation to a high level. Without anchors and the persistence of failed price controls, this year’s inflation will undoubtedly exceed 50.9% by 2021.EcoGo economist Lucio Garay Mendes said in a dialogue with this newspaper, adding that they estimate 60% by 2022.

For his part, Camilo Tiscornia, CEO of C&T Economic Advisors, said food and beverage inflation would definitely exceed 5% in March. “Wheat production has risen sharply since the Ukraine conflict, while fruits and vegetables, which rose sharply in February, have declined,” he said, adding that the overall index was probably more than 5%. Increase in gas, electricity and fuel, within adjustable points; Schools and cigarettes, which increased in late February and dropped in March.

As for the 2022 inflation rate, he predicts it will be up to 60%.

Latest dimensions

After President Alberto Fernandez declared a “war” against inflation on the day the CPI data for February were released – giving 4.7% volatility and 7.5% for food and beverages – Minister for Productivity Development Matthias said last week. Cult and Home Trade Secretary Roberto Felleti met with representatives of supermarkets and food companies and said that prices for 580 products had “increased unjustifiably.”

In addition, Feletti has announced a new cart for new products and local businesses (warehouses, neighborhood businesses and Chinese supermarkets). “We are trying to get the least controlled, least regulated places,” he said. As for the Cared Prices program for nearby businesses, Feletti explained that it will take effect on April 7 to coincide with the general program of the large basket chains. Prior to that, negotiations were held with the companies. The official said he hopes there will be no more growth, but no concrete measures will be taken by that date.

Source: La Nacion