in 2020, inflation for the poorest was close to 48% and that of the richest only 30%

In 2020, inflation in the poorest or indigent sectors would have increased up to 48% facing inflation 36.1% on average. While that of the highest income sectors would have been below 30%.

Thus, due to the higher incidence of Food pricesInflation of the last year, as it has occurred with particular force in recent years, has raged and had more serious adverse consequences for the poorest individuals and families. For a typical family, a married couple and 2 minor children, the poverty basket would have reached $ 55,000 in December.

Part of this data will be confirmed next Thursday when INDEC publishes the values ​​of the basic food basket (CBA) which determines the homeless line and the total base basket (CBT) which defines the poverty levels. This measure only includes capital and ABC.

Until November, the indigence line in the metropolitan area increased by 38.4% and the poverty line by 32.9%. With food prices soaring in December, it is estimated that the poverty basket could have ended the year at around 40% and the extreme poverty basket at 48% or more.

This happens because in the basic food basket the food products that have risen the most are predominant and that they weigh the most in the basic baskets. For example, in December, in Capital and GBA, the price of potatoes rose 6.7%, bananas 10.8%, chicken 16.1%, roast 28.5%, common ground meat 10.9%, buttock 20%, apple 7.4% and orange 22.1%.

Moreover, if food and non-alcoholic beverages have a 23% impact on the capital and suburban consumer price index, the food products that make up the total basic basket represent 33%. And the foods just mentioned are part of the basic food basket of INDEC.

Therefore, these price increases and the higher incidence of these foods in the food basket determine a much larger increase than the Capital CPI and ACS, which in food was 4.4% in December.

This was most notably manifested last October when food rose 4.8% in the metropolitan area and the poverty basket soared to 6.6% and the poverty basket to 5.7%.

So, for example, if the indigence line which until November increased by 38.4%, in December had increased by 6%, it would end the year at 46.7%. Whereas with an increase of 7%, it would reach 48%.

What about inflation in the upper middle and richer sectors?

INDEC does not perform this measurement but an approximation results from compare the average inflation of the city of Buenos Aires – where the higher-income sectors reside in a greater proportion – with that of the NEA, a region which includes the Chaco, Corrientes, Formosa and Misiones, with indigence rates and higher poverty.

CABA’s Statistics and Census Department reported that average inflation in 2020 was 30.5% against 42.4% recorded by INDEC in the NEA. But the basket of homeless people in CABA stood at 43.9%, which would surely lead the NEA to exceed 50%.

“Inflationary pressure on the poorest 20% in 2020 was double that of the richest 20%. In other words, the rise in prices hit the popular sectors twice as much as the wealthier ones. It is a phenomenon that has unfolded with particular force since the government of Mauricio Macri and did not prevent. Also, the minimum wage and minimum pension increased last year below the indigence line value of a metropolitan type family, ”he said. Bugle, The specialist Artemio Lopez of the Consultant Equis.

With these values, the poverty line for a typical family (married couple and 2 children) which in November was $ 51,775.61 could have been around $ 55,000 in December, a value much higher than the income of unregistered employees. – including receiving the AUH-, from at least half of the registered workers, including the collection of family wages, and a large part of the self-employed or self-employed.

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