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Argentine inflation in July was the highest in the region and displaced Venezuela from first place

Today the inflation for July in Argentina was announced, marking a strong rise of 7.4%, being This is the highest in the region and also higher than many countries in the world.since they registered low price indices or, in the case of Brazil and Greece, a deflationary phenomenon took place.

In turn, Argentina registered an interannual variation of 71.0%, the second highest after Turkey (79.6%).

July inflation: which products increased the most

regional comparison

By the side of Chile, recorded a inflation of the 1,4% for the month of July according to data from the Consumer Price Index (CPI).

In that sense, the country presided over by Gabriel Boric, accumulates a year-on-year inflation of 13.1%, the highest in 28 years, according to what was reported by the National Institute of Statistics (INE).

The country accumulates an inflation of 8.5% so far this year, among the categories with the highest price increases were transportation and food and non-alcoholic beverages. Clothing and footwear fell in price during July.

For its part, Venezuela had an inflation of 5.2% in Julyaccording to data from the Venezuelan Finance Observatory (OVF).

Paraguay

Inflation in Paraguay in the month of July was 0.7%, while the accumulated so far this year was 6.7%according to the report of the Central Bank of Paraguay (BCP).

Regarding inflation from July 2021 to July 2022, it climbed 11.1%. Among the products that had the greatest impact on the Price Index were oil derivatives and services.

While the transport division also suffered a strong rise due to fuel increases taking into account the context of the war between Ukraine and Russia.

Bolivia

The Consumer Price Index (CPI) of Bolivia, registered inflation in July with an impact of 0.39% compared to June. The accumulated variation to the month of July was with an increase of 1.58%. While the variation year-on-year was 2.04%.

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The price increases in the Andean country are mainly due to the positive variation in prices in the transport divisions; household furniture, goods and services; food and non-alcoholic beverages; miscellaneous goods and services; clothing and footwear; housing and basic services and education.

Uruguay

The neighboring country of Uruguay recorded a monthly inflation of 0.77%, while the accumulated figure for the year had a variation of 6.86%. The interannual variation registered a 9.56% markaccording to the CPI.

In turn, the products that had the greatest impact on the rise in inflation were the categories of food and non-alcoholic beverages (0.26), housing (0.07), health (0.10), transportation (0.08) and , restaurants and hotels (0.11).

Brazil

Inflation in July was -0.68%the lowest rate since 1980, although the rate remains in two digits (10.07%) for the last 12 months, analysts project that it will be the last month with inflation above 10%.

The sharp drop in prices is due to “shock” therapy Implemented by the ruling party, with the endorsement and sponsorship of Bolsonaro, Congress approved a law at the end of June that established a reduction in taxes on fuel, electricity, communications and collective transport, which produced a deflationary effect. .

Among the main falls, gasoline stands out with 15% and residential electricity, with almost 6%. These items together represent 10% of consumption of families in Brazil.

Comparison with the rest of the world

Inflation monitor for Argentina and the world in July: drop in world inflation, with countries with zero inflation and deflation. The gap between Argentine inflation and world inflation widenedexplains a report by the economist Nadín Argañaraz.

Credit: Nadin Argañaraz. “Inflation comparison of Argentina and the rest of the world”.

Among the countries, it stands out that, although the majority had positive monthly inflation, three countries had zero inflation: the United States, Switzerland and Portugal. For its part, Spain, Brazil, Luxembourg and Greece had deflationbeing in the case of Greece 1.8% per month, explains the report.

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Considering the interannual variation to July 2022, in the sample considered, the following stand out: Turkey (79.6%) and Argentina (71%). Then follows a second group of four countries with inflation in the order of 20% year-on-year (Estonia, Lithuania, Latvia and the Czech Republic). At the other extreme, Switzerland, China and Bolivia recorded year-on-year inflation of less than 3.4%.

Comparison of inflation in Argentina and the rest of the world 20220811
Credit: Nadin Argañaraz. “Inflation comparison of Argentina and the rest of the world”.

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