Consumer inflation in November was 1.4 percent according to the INDEC

The Consumer Price Index (CPI), as reported by the IPC Congress – a group of representatives from opposition parties who average measurements from multiple consulting groups-both public and private- have estimated inflation during February as registering in at 2.1 percent, while the last 12 months saw an increase of 34.3 percent in total.

The report, which will be presented today by representatives of the economic team of Frente Renovador-UNA and other members of the opposition say that the main increases can be attributed to “housing and basic services (increase in electricity bills) and medical care and health spending”.

The cost of food and drink saw an increase close to 1.5 percent as well.

“The first two months of this year saw inflation reach 3.8 percent combined – and while this is a reduction compared to the inflation measure the same time last year at 8.5 percent, it is in line with the average growth for the first two months since 2011 which is 3.7 percent,” the report claims.

On the other hand, legislators have pointed out that the average monthly inflation every month for the past six months is 1.8 percent – which would represent an annual increase of 24%.

Inflation figures for the past six months
Inflation figures for the past six months

The representatives from opposition parties also pointed out that if the index were to revert back to 2 percent in March, inflation would have to average 1.1 percent for the rest of the year in order to achieve the budget target. But since we are already expecting increases in the price transport, water and gas, this doesn’t seem an easy goal to achieve.

Legislators affirm that despite the decrease in inflation in 2016, the persistent increase in prices ‘will continue to be the main problem the Argentine economy has to resolve’. ‘Since the last adjustment they got, in September 2016 pensions and the Universal Child Allowance lost 9.5 percent of their purchasing power,’ the report added.

The government’s official statistics agency, Indec, will release its own report this week as well.