Consumer consumption continues to fall in Argentina.
A new report by the Cámara Argentina de Comercio y Servicios (CAC) group reveals that consumer sales slowed 3.5 percent year-on-year last month, implying a non-seasonal 1.5-percent increase as against January (that is, discounting the usual seasonal effects throughout the year).
The data comes from CAC's consumer indicator index, which reflects the monthly consumption of end goods and services in households.
As in January, high inflation continues to affect purchasing power, leading to an even deep slump in consumption.
Overall, the CAC index shows that consumption dropped 2.7 percent in the first two months of the year.
Cutback on subsidies in real terms, along with the impact of adjustment from collective bargaining talks that are outpaced by inflation, have heavily affected spending by families. Not to mention the impact of inflation, which has continued in two digits for the first two months of the year.
In February 2024, consumer prices rose 13.2 percent, with annual inflation now at 276.2 percent. Prices have increased 36.6 percent so far this year.
Last week, the INDEC national statistics bureau revealed that sales rates at supermarkets, wholesalers and shopping centres all declined in January. All rates were negative, showing the other side of the monetary squeeze: a strong recession and a sudden halt of consumption.
In January, there was a drop in consumption at all levels. A 13.8-percent drop in the total sales rate, at constant prices compared to January 2023 for supermarkets, said INDEC.
– TIMES/NA
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