The Argentine government asserts that prices for crucial household services like internet, mobile phone bills, and fuel are lagging, indicating potential for increases above average inflation rates.
In recent discussions surrounding inflation in Argentina, a report by the Banco Central has highlighted that certain critical prices, including public utility tariffs, internet subscriptions, mobile phone services, and fuel costs, are still showing signs of being 'behind schedule'. The government believes that these areas still have room to increase prices beyond the average inflation rate, which is particularly relevant given the recent decision to suspend changes in the methodology for measuring inflation on a monthly basis.
The findings presented by Vladimir Werning, the vice president of Banco Central, to investors in London two weeks ago, illustrated the performance of a significant group of goods and services over the past few years in relative terms to others. This analysis pointed out that certain prices have not adjusted at the same pace as overall inflation, leading to a perception of an impending surge in these prices and raising questions regarding the government’s approach to inflation management.
The implications of these findings are profound for households across Argentina, as any significant increase in costs for essentials like utilities, internet, and fuel could exacerbate the already pressing economic challenges faced by consumers. The government's strategy appears to balance the need to manage inflation against the political and social pressures stemming from rising living costs, making this a critical point of contemplation for the administration moving forward.
