Food prices accelerate in October

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Food prices accelerate in October




(200629) - BUENOS AIRES, June 29, 2020 (Xinhua) - A woman wears a mask while shopping at a butcher shop in the city of Buenos Aires, capital of Argentina, on June 29, 2020. The Argentine city of Buenos Aires is getting ready to return to a strict quarantine due to the pandemic of the disease caused by the new coronavirus (COVID-19), so since Monday it has ordered severe controls on public roads, amid the uncertainty of residents due to the economic impact of the measure. (Xinhua / Martín Zabala) (mz) (ra) (rtg) (dp)


© Provided by Clarín
(200629) – BUENOS AIRES, June 29, 2020 (Xinhua) – A woman wears a mask while shopping at a butcher shop in the city of Buenos Aires, capital of Argentina, on June 29, 2020. The Argentine city of Buenos Aires is getting ready to return to a strict quarantine due to the pandemic of the disease caused by the new coronavirus (COVID-19), so since Monday it has ordered severe controls on public roads, amid the uncertainty of residents due to the economic impact of the measure. (Xinhua / Martín Zabala) (mz) (ra) (rtg) (dp)


So far in October, food prices accelerated again. In a context of the rise in the dollar and also the expectations of companies that the Government authorize more increases due to higher costs, inflationary dynamics gained new momentum.

A survey by the consulting firm LCG on 8,000 food and beverages in five supermarkets found that the biggest increases fell on products such as meats, fruits and vegetables, and baked goods.

“In the second week of October, the rise in food prices averaged 1.4%, accelerating 0.8 percentage points compared to the previous week. So far this month the accumulated increase is 2%. Against the same weeks of September, the average increase amounts to 3% per month ”, commented the consultant in its latest report. In addition, he detailed that this dynamic leaves a drag of 2.6% for the whole month.

According to this monitoring, andl 43% of the weekly increase was due to the increase in meat, an essential product of the food basket and with a high incidence in the price index. In this area, the weekly rise was 2%.

Baked goods, pasta and cereals advanced 1.9%; ready-to-go meals, 1.6%; dairy and eggs, 1.5%; oils, 1.2%; sugar, sweets and cocoa, 1%; condiments, 0.7% and drinks to be consumed at home and infusions averaged a rise of 0.7% compared to the previous week.


The products with the highest increases in the first half of October, according to LCG


© clarin.com
The products with the highest increases in the first half of October, according to LCG


The increase in baked goods was not a surprise. This week, the Argentine Federation of the Bread and Related Industry warned about the rise 10% on bread, as a result of the increase in the different inputs, particularly flour.

The striking data of the monitoring of mass consumer prices carried out by LCG was the increase in the proportion of products that registered increases. While in the previous weeks (in September, for example) 7% of the products registered increases, in the first week of October, that percentage went to 9% and in the second week al 39%. In other words, the portion of products with new increases increased 30 points compared to the previous week. In addition, prices rose to a higher rate of change.

If the monthly behavior of these products is analyzed, the increase averages 3%. In this case, also meats lead the increases with 4.3%; fruits, 4.1% and baked goods, 3.6%. These three food groups together weigh 50% of expense and they grew above the monthly average, LCG warned.

Beyond the behavior of the values ​​in the gondolas, as the report of the consultancy shows, in the local shops the containment of prices is even more difficult. In this sense, in the last hours, grocers and wholesalers warned of increases in between 10% and 15% from your suppliers. They claim that this situation prevents them from complying with the official Maximum Prices program.

According to the Mediterranean Foundation (IERAL), “Since its implementation, the maximum prices have not stopped losing ground against costs. Compared to the official exchange rate, the maximum prices lost 13.5 percentage points since March and 38.9 points versus the blue. the wholesale, industrial and agricultural prices, the lag is between 6.9 and 8 percentage points “, consigned a report of the institution.

In official statistics, the price of food has been growing above general inflation in the last two months. In September, the last available data that was known this week, the average rise of the inflation was 2.8% according to INDEC and food and beverages rose 3%. In August, the jump in basic products was greater: they rose 3.5% compared to a general rise in the Consumer Price Index (CPI) of 2.7%.

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