Inflation in January was of 5%
Argentina, January 31, 2014
While the devaluation phenomenon, January had an inflationary level of 5 %. Although the Government agreed to roll back prices to 21 January, the meat went up by 20% as well as many goods. Specialists say that February will be a month with more accurate statistics.
The upward trend that began in December was not abandoned. The first month of 2014 shows an overall increase of 5%, mainly in home appliances and consumer products.
Major consultants attributed the rise to increases in transportation, fuel, and prepaid tolls that were implemented in the first week of January.
Although there is another factor: the devaluation. As state policy, the Government decided not to manage the exchange rate for a few days, until it reaches a stable level to not stall imports and promote competitiveness. However, it is well known that devaluation causes inflation and thus impacts in the poorest sectors.
At the moment, the effect of the devaluation in January is partial since its implementation came at mid-month. For consultants, February will be the best one to have a more complete assessment of the inflationary effect of the measure.
Lorenzo Sigaut Gravina, Ecolatina economist said that next month will be complicated as the rate changes will impact in the increase of prices: “The devaluation was in mid-January, so that it will definitely have a strong effect in February”.