If you’re having trouble seeing that reported slowdown in inflation — you’re not alone. The Government had predicted a decrease in inflation starting July 2017, but private consulting firms have indicated that consumers should wait before getting their hopes up. Here’s a list of goods and services marked to rise in price in the coming weeks.
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Companies selling products of high consumption, soda, dairy products, and hygiene products, have already sealed their prices with a 2 to 8 percent increase. This is enough of a jump that many economists are asking if inflation rates for July will stay match with government expectations.
If you were considering letting go of the death sticks, now’s the time. Massalin Particulares, a company affiliated with Phillip Morris, has said its prices will go up an average of 4 in the short term. It is expected that the remaining companies in the industry will follow suit.
Sources have communicated to Infobae that the rise in prices was “due to high tax pressure”. Ferreres & Asociados have calculated that the rise in cigarettes’ prices will be impacting July’s inflation rate by 0.07 percent.
Gas prices are boiling up as well, hopefully easing up winter vacation traffic. The Ministry of Energy and companies pertaining to the industry have agreed upon a 7.2 percent increase in gasoline and 5.9 percent rise in diesel oil prices.
For Luis Miguel Etchevehere, president of the Sociedad Rural Argentina (SRA), winter vacation traffic is the least of his worries. The increase in gas prices will cost the farming industry an additional AR $3600 million, due to transportation fees.
Building expenses didn’t make the cut either. Building managers’ salaries have been bumped up 21 percent, an increase which has been gradually applied in two installments. A backdated payment has been added onto May’s bills, whereas the residual 11 percent will be appended onto July’s expenses.
The Ministry of Health had authorized a 6 percent increase for July and an 8 percent rise for August in medical services. The Government claims these increments are due to “projected increases in the industry’s costs.”
There’s no denying that the change in relative pricing came at a bad time. In addition to the previously mentioned rise in prices, we must also take into account the fact that Winter is coming.
Winter vacation is upon us and prices are bound to escalate. The predicted inflation rate for July also includes an estimation of companies increasing their prices for the mere sake of everyone being on holiday.
With these rates, the government’s optimistic predictions of a 17 percent annual increase are now in the past. Experts believe a 20 percent increase in expenses is to be expected by the end of the year.