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[BUSINESS] · Argentina · 17 sources

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Argentina inflation slows to 1.7% in August amid ongoing purchasing power concerns

Argentina recorded a monthly inflation rate of 1.7% in August, the lowest in 14 months, according to INDEC. While the government has celebrated this deceleration as a sign of economic stability, the data reveals a complex reality for consumers. The annual inflation rate stands at 33.5%, and the cumulative inflation for the first eight months of the year is 21.3%.

Despite the slowing headline rate, the erosion of purchasing power remains a critical issue. Minimum pensions have lost nearly 41% of their purchasing power since late 2019. Similarly, formal private-sector wages have faced significant declines, with many workers earning less than the amount required to cover the basic food or total basic baskets. In some regions, such as Tucumán, a typical household requires over $1.3 million to avoid falling into poverty.

Recent data from the second week of September suggests renewed pressure on food prices. Private consultancies like LCG reported a weekly increase of 3% in food items, driven largely by a 9.2% rise in baked goods, cereals, and pasta. While some analysts, such as Analytica, reported more moderate weekly increases of 0.4%, the divergence highlights the ongoing volatility in essential goods. Additionally, rising costs in services and utilities continue to disproportionately affect vulnerable groups, including retirees.

Entities

Argentina · INDEC · Javier Milei · LCG · Luis Caputo · Universidad Metropolitana para la Educación y el Trabajo

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about 8 hours ago