MercoPress. South Atlantic News Agency

Argentina's inflation for July 2021 measured at 3%

Todesca admitted projections for 2021 will not be met

Argentina's Consumer Price Index (CPI-Cost of Living) increased 3% in July, according to a report from the National Institute of Statistics and Censuses (Indec) released Thursday.

The new index came out two tenths below June's 3.2% in June, and reached the fourth consecutive month of slowdown.

So far in 2021, retail prices increased 29.1%, formally exceeding the inflationary pattern that the national government had planned for the year.

The new results yield a yoy inflation of 51.8%.

The Indec reported that goods increased 2.9% and services 3.1%, while seasonal products advanced 4.9%, regulated services 1.4%; and the Core CPI, 3.1%.

Food and Beverages registered a rise of 3.4%; health care 3.8%; alcoholic beverages and tobacco 3.1%; housing, water and electricity 2.9%; Education 2.5%; and restaurants and hotels 4.8%.

So far this year, retail inflation has risen to 29.1%; with increases of 30.7% in food and beverages; 35.1% in transportation; 40.6% in education; 29.6% in health care and 31% in clothing.

Indec also reported that in that period goods increased 31.3% and services 23.8%

When the prices of July of last year are compared with the same month of this year, the average rise reached 51.8%. Above this line were food and beverages; with 56.4%; transportation 62.9%, clothing, 61.7%; health care 54.4%; and restaurants and hotels with 54.3%

Below the average inflation rate, there were advances of 30.6% in housing, water, electricity and other fuels, 46.4% in home appliances and maintenance; 27.6% in Communications and 35.5% in goods and services and yoy goods rose 57.9% and services 38.2%.

Thursday's figures confirmed Economy Minister Martín Guzmán's forecast that inflation would slow down gradually after a 4.8% increase in March.

Deputy Cabinet Chief Cecilia Todesca Bocco admitted that inflation had been decreaasing at a pace lower than the one the Government would have desired and therefore the 29% inflation projected for 2021 has become unattainable.

She also explained there was “a very strong international price shock during the first months of the year and this had an impact on an economy that was working on a high level of inertia.”