Tuesday, June 25, 2024

ECONOMY | 07-08-2023 16:50

Inflation in Buenos Aires City hit 7.3% in July, up 118% over past year

Between January and July, prices accumulated a rise of 62.3%, according to the City Hall data.

Inflation in Buenos Aires City climbed by 7.3 percent in July and prices in the capital have soared 117.9 percent over the past year.

The data, confirmed by City Hall’s statistics bureau on Monday, is a slight rise on the previous month. Between January and July, price hikes totalled 62.3 percent. Inflation in June was 7.1 percent.

 Last month, the variation in the City of Buenos Aires Consumer Price Index (IPCBA, by its Spanish acronym) stemmed mainly from rises in the following sectors: restaurants and hotels, housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; healthcare, recreation and culture.

Between January and July, the price rise in the nation’s capital was 62.3 percent, according to official data.

City Hall said that the restaurants and hotels category increased on average by 12.4 percent, contributing 1.41 percent to the monthly variation of the IPCBA, as a result of the increase in prices of prepared food at restaurants, bars, hotels and other catering establishments.

Housing, water, electricity, gas and other fuels were up 6.9 percent and continuted 1.28 percent, with the main impact coming from adjustments in the price of rent and, to a lesser extent, increases in common housing expenses.

Food and non-alcoholic beverages rose on average by 5.6 percent, contributing 1.01 percent to the overall figure: within the sector, the main impact came from bread and cereal (7.3 percent), milk, dairy and eggs (6.7%) and meat and related products (3.2 percent).

In the meantime, healthcare rose eight percent and contributed 0.65 percent, due to adjustments in private health insurance rated and medication prices. Recreation and culture increased by 11.5 percent, contributing 0.65 percent, chiefly because of the rise in the prices of books and travel packages. The rest of the sectors had a positive, albeit lower, influence in the overall level.

On a year-to-year basis, housing, water, electricity, gas and other fuels, food and non-alcoholic beverages and restaurants and hotels were the main culprits in terms of retail price hikes, which accounts for the 50.7 percent of the overall year-to-year variation, according to City Hall.

Goods rose by 6.3 percent in July, below services, which increased eight percent. The monthly dynamic of goods is essentially explained by the increase in food values (mainly bread, dairy and meats). To a lesser extent, the rises in fuel prices and household vehicle lubricants, books, cars and medication stood out.

On the other hand, the behaviour of services was mainly reflected by increases in rent, restaurants, bars and other catering establishments and hotel tourist rates. This was followed by adjustments in education and private health insurance rates. 

Over the first seven months of the year goods accumulated a 58.3 percent increase and services 65.2 percent, according to official data.




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