Core basket product that grew the most in a year: went from 195 to 650 pesos and grew 250%

According to a private report focusing on businesses in the suburbs of Buenos Aires, the kilo of sugar was the product of the basic basket that increased the most in a year. In the price race surveyed based on July prices, followed by noodles, rice, lentils, peas and milk. These are essential elements in the consumer pattern of popular sectors.

According to the survey carried out by the Social Research Institute for Citizen Economic Policy (ISEPCi) in 900 businesses in 20 areas of the suburbs of Buenos Aires, The kilo of sugar from 195 dollars in July 2022 reached 650 in July 2023, i.e. an increase 253.85%. Below were: Stew noodles (168.18%), rice (167.86%), lentils (159.33%), peas (144.44%) and milk (143.75%).

To buy the same food as thirty days ago, a family of two adults and two children had to add $7,812 to their monthly budget in July. The value of the Basic Food Basket (CBA) was $110,079.25, an increase of 7.64% compared to June. So far in 2023, CBA itself has been up 71.64%, while in the last twelve months the rise was 118.36%.

Hand in hand with potatoes (+50%) and sweet potatoes (+20%) in vegetables and apples (11.11%), the fruit and vegetable category once again led the increases: 14.35% in July and 178 % on an annual basis. Warehouse products followed: 7.48% monthly and 125% year-on-year. In the meantime, Meats continue to lag: up 3.41% in July and 80% over the past twelve months.

“Increases in rates for natural gas, electricity, fuel, communications, transport, home maintenance, in many cases are on top of increases in food, strongly impacting CBT,” the report notes. In July it reached $245,476.73, when a year earlier the same family needed $112,922.54 to cover the same expenses, so in the last twelve months they had to add $132,554.19 to their income to stay below the poverty line.

According to the latest INDEC publication, when we compare the fluctuations between food and some basic services, some important facts emerge: while the interannual increases in items such as water, electricity and natural gas, health, transport and communications are lower than those produced in food, last June the increases in these services doubled.

Price controls are complicated

The extension of the program to neighboring Fair Prices began to be implemented between the last days of May and the beginning of June, depending on the wholesale supermarket. After the first two weeks, during which there may be application adjustments, the in-person surveys of AMBA wholesale supermarkets began.

This extension of the program has a basket of just over 100 products that can be bought in eight supermarket wholesale chains and some distributors to supply warehouses and small supermarkets, which until now was not provided for in the original program. From these products, the advisor selected a basket containing 26 products, including food, beverages, and cleaning and hygiene products.

According to the Mariano Moreno Center for Popular Sovereignty Studies report, overall non-compliance is close to 40% and some products have up to 87% non-compliance. In terms of the distribution of non-compliance, 32% were due to lack of stock, while 3% did not comply with labeling and 3% did not adhere to price.

What happened at the end of July?

The food rose 3% in the fourth week of July, driven by strong increases in baked goods and vegetables. Instead, most of the data reflected a significant slowdown compared to seven days ago. So far this month, the products that make up the core basket are up 7.4%.

According to a report accessed by consulting firm LCG Apocalypse, In the fourth week of July, food price increases averaged 3%, accelerating by 0.7 points from the previous week. On this occasion, baked goods dominated the weekly gain, explaining more than 72% of the total variation.

According to the document, monthly inflation accelerated again: 5% in the last month and 0.8 points compared to the previous week after several weeks of slowdown. In the monthly average, the nominal decrease in fruit and the modest increase in meat cannot compensate for the increase in pastries and beverages.