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They shot up 54% monthly in December after the devaluation

He sharp increase in wholesale prices is explained by the advance of 51.1% in the “National products” and of 80.6% in the “Imported products”.

In that sense, the economist and director Center for Argentine Political Economy (STRAIN), Hernan Letchersaid that the spike in prices is largely explained by three issues: “First of all, the impact of deregulation and to carry international parity various prices; in second place left a high floor for January inflation -although he clarified that it is not a direct correlation- and thirdly, increase in ‘energy’ with 5.1%since if energy had increased more, the wholesalers would have been even larger.

On the other hand, the basic wholesale internal price index (IPIB) showed an increase of 53.2% in the same period. In this case, the variation is explained by the rise in 50.3% in “National products” and of 80.8% in “Imported Products”.

Also, the basic producer price index (IPP) registered an increase of 50.9% in the same periodas a result of the rise in 43.2% in “Primary Products” and of 53.9% in “Manufactured products and electrical energy”.

Inflation: do wholesale prices impact the January CPI?

The shooting of the wholesale prices leaves a high floor for inflation from January. Taking into account that in December the consumer price index (CPI) rose only 25.5%, it is possible that there is still part of this increase in wholesalers that could go to the retailer.

“It is not a direct extrapolationbut it is difficult to imagine inflation around 15% or 20% in January with a wholesale increase of 54%,” he explained letcher.

News in development…

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