When was the last time there was such high inflation in Argentina?

The consumer price index (CPI-Cost of Living) registered an increase of 3.8% last December and accumulated a rise of 50.9% throughout 2021, as officially reported today by the National Institute of Statistics and Censuses (Indec).

In December, the item with the highest increase was Restaurants and hotels (5.9%), driven by higher demand related to the lifting of traffic restrictions and a higher level of tourism; followed by Alcoholic beverages and tobacco (5.4%), mainly due to the rise in cigarette prices.

In general, in December the rise in Food and non-alcoholic beverages (4.3%) was the one that had the highest incidence in all regions. In this item, the division that contributed the most was Meat and derivatives and, to a lesser extent, Bread, cereals, milk, dairy products and eggs.

How much was inflation in recent years?

The increase in December determined that the year closed with a difference of 14.8 percentage points compared to the end of 2020, when the accumulated was 36.1%. With respect to 2019, inflation in 2021 was 2.9 percentage points lower, since that year it stood at 53.8%.

This is the interannual variation according to the INDEC. The last year that inflation was so high was in 2019 (Chronicle).

In the accumulated of 2021, for its part, the item that increased the most was Restaurants and hotels, with an increase of 65.4%; followed by Clothing and Footwear (64.6%), Transportation (57.6%) and Alcoholic beverages and tobacco (55.1%).

On the other hand, below the average of 50.9% were Housing, water and electricity (28.3%), Communications (35%), Recreation (45%) and Food and beverages (50.3%). The 3.8% increase in December was above the 2.5% registered in November.

What were the items with the highest increases during December?

In December, core inflation was 4.4%, compared to 3.3% in November, while the prices of seasonal products rose 3.7%, led by clothing and tourism. For their part, regulated prices increased 1.7% monthly, compared to 1% in November, with increases in tobacco and electricity and public transport at the provincial level.

During the last month of 2021, inflation was driven by Food and Non-alcoholic Beverages, which marked an advance of 4.3% per month, compared to 2.1% in November. In the latter case, increases were verified in all items, with the exception of Fruits and Vegetables.

March was the month in which there was a peak in inflation during 2021 according to the data provided by INDEC (Chronicle).

In December, transport also marked a significant increase, in this case of 4.9% per month, compared to 2.2% in November, driven by the prices of vehicles and increases in public transport in some districts, among them the related to tourism. Prices related to the Restaurants and hotels division also rose sharply, with an increase of 5.9% compared to 5% in November.

On the other hand, among the items that increased the least, was Health, with an increase of 0.5% compared to 2.4% in November, based on the stability registered in medicines by the agreement reached by the government with laboratories.

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