Food and non-alcoholic beverages were most affected by inflation in 2023, the INDEC national statistics bureau revealed Thursday, with some items soaring more than 500 percent.
As shown by INDEC's consumer price index, food and alcoholic beverages recorded a 29.7-percent increase last month. The figure means the category recorded a 251.3-percent rise over the last year – both figures above the general CPI 25.5 percent and 211.4 percent respectively.
Now surpassing 200 percent, Argentina's annual inflation rate is now at its highest since the 1990 hyperinflation, during the start of former president Carlos Menem’s first term in office.
As for the products most affected over the past year, hikes in rice, mince beef, sugar and eggs stand out.
Here are some of the largest increases over the past 12 months:
- Eggs - Dozen: from 401 to 1,531 pesos, a 281.8-percent rise in 2023
- Sugar - Kilogramme: from 259 to 1,241 pesos, a 379.1-percent rise in 2023
- Sunflower oil - 1.5 litres: from 827 to 2,099 pesos, a 153.8-percent rise in 2023
- White rice - Kilogramme: from 206 to 1,513 pesos, a 634.4-percent rise in 2023
- Wheat flour - Kilogramme: from 163 to 539 pesos, a 230.6-percent rise in 2023
- Stew pasta - 500 grammes: from 184 to 873 pesos, a 374.4-percent rise in 2023
- Whole milk sachet - Litre: from 230 to 658 pesos, a 186-percent rise in 2023
- Baguette - Kilogramme: from 336 to 1,193 pesos, a 255-percent rise in 2023
- Mince beef - Kilogramme: from 833 to 3,464 pesos, a 315-percenr rise in 2023
- Whole chicken - Kilogramme: from 455 to 1,682 pesos, a 269.6-percent rise in 2023
- Potatoes - Kilogramme: from 204 to 677 pesos, a 231-percent rise in 2023
The data came from the measurement of the “average by element of a selection of food, beverages and other items in the CPI food basket” by the INDEC, based on different regions (Greater Buenos Aires, Pampas, Northwest, Northeast, Cuyo and Patagonia), and their respective comparison with the data in December 2022.
Looking at the Buenos Aires Metropolitan Area, there were significant variations in other elements:
- Asado cut – Kilogramme: from 1,241 to 5,195 pesos, a 318.6-percent rise in 2023
- Fresh hake filet - Kilogramme: from 1,293 to 3,660 pesos, a 183-percent rise in 2023
- Bananas – Kilogramme: from 381 to 1,530 pesos, a 301-percent rise in 2023
- Round tomatoes – Kilogramme: from 231 to 896 pesos, a 287.8-percent rise in 2023
- Still water – 1.5 litros: from 138 to 454 pesos, a 228.9-percent rise in 2023
- Ground coffee – 500 grammes: from 1,068 to 3,138 pesos, a 193.8-percent rise in 2023
- Butter – 200 grammes: from 430 to 1,326 pesos, a 208.3-percent rise in 2023
- Mate tea – 500 grammes: from 377 to 1,397 pesos, a 270.5-percent rise in 2023
As to the causes behind this, analyst Florencia Florentin, a member of the consultancy EPyCA Consultores consultancy firm, attributed it to “the drought, mostly in the first half of the year, and then to the devaluation and macroeconomic instability since August.”
She considered that the devaluation of the peso to be a key factor in the price surges.
Florentin added that this trend “was consolidated in December” with the “elimination of price agreements” such as the Precios Justos (Fair Prices) scheme, and the “increase of imported supplies and also of fuel,” with 90-percent increases by oil companies in the last two months.
In addition to these arguments, analyst and university professor Pablo Tigani included “speculation” and “competition for income,” where, he argues, “every sector of the economy seeks ‘a bit more’” – even if this was one of the sectors with the greatest state intervention in 2023.
“The State talked, but it was not effective at containing prices. Dialogues do not solve prices," said Tigani. "There was virtually no unemployment, Sergio Massa gave away money and people bought more food without checking whether prices were valid or outrageous. In Argentina there’s no consumer conscience. Then prices rise even ‘without money,’,as a result of each one setting them according to their own decisions."
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