Wholesale prices increased by 1.7% in January compared to the previous month, while year-on-year inflation reached 26.4%, highlighting a significant gap with retail price increases.
In January, wholesale prices in Argentina escalated by 1.7% compared to the previous month, as reported by the National Institute of Statistics and Censuses (Indec). This increase is notably below the retail price indices, which surged to 2.9%, raising alarms about consumer price hikes. The official intervention on price indices maintained the outdated basket from 2004 instead of updating it to reflect 2017-2018 consumption patterns. Taking into account the Internal Wholesale Price Index (IPIM), year-on-year wholesale prices have risen by 26.4%, which underscores significant inflationary pressures within the economy. The bulk of the price increase in January was driven by a 1.7% rise in national products and a 1.5% increase in imported goods. This situation indicates that producers and importers are facing substantial costs that may soon reflect in consumer prices. The consumer price index (CPI) shows what end consumers pay in retail and services, while the IPIM measures the price changes at which producers and importers sell in the domestic market, including taxes. Indec also reported that the Basic Internal Wholesale Price Index (IPIB) experienced a monthly rise of 1.6% and an annual increase of 26.6%, suggesting that inflation remains a pressing issue in the Argentine economy, with implications for both producers and consumers alike.
