Today, the Institute of Statistics and Census (Indec) released data from its Consumer Price Index (CPI) for the month of January. The increase in the price level closed by 2.3%, 1.4% lower than the last month of 2019. This is the lowest percentage in the last six months.
The number is indicated below 3.5% predicted by the Market Expectation Survey (REM) report published by the Central Bank based on projections by private consultants. However, the president of the BCRA Core inflation stood at 2.4%. This variant does not take into account goods and services whose values depend on the time of year (seasonalization) or factors outside monetary policy, such as a poor harvest or an international conflict. The year-on-year price change (which measures the increase from the same month of the previous year) accumulates 52.9%. The largest increases in January were in the «recreation and culture» area, which increased by 5%. It is followed by «food and drink,» with 4.7%Thus the first steps taken by the new government to curb inflation seem to be delivering. The freezing of tariffs and naphthas, as well as the relaunch of the Price Care program are the main tools of the Alberto Fernández administration to stop the rise in prices. The question lies in what may happen when tariffs are deregulated. With the target set at 40% for the entire current year, it is important for the government to show an inflation rate in decline compared to the previous month. The president’s sights are on the negotiation of external debt and in joint discussions, two issues where the inflationary issue is fundamental. In this note: