Prices, what happened and what will happen to inflation

A report from the Economics Department of the IAE Business School of the Universidad Austral, by Eduardo Luis Fracchia badyzes various economic aspects of June, including prices. This study, conducted by Carlos Belloni reveals how the evolution of inflation and its impact, and what should happen with prices in the coming months. A summary of the work is as follows:

 In June, the impact on the prices of devaluation added to the increase in fuels and advance payments was fully observed .

 Domestic retail price inflation in June was 3.7% monthly and 29.5% annually. In the year accumulates a growth of 16%.

 Core inflation has also accelerated. In June, it increased by 4.1% and, year on year, it rose to 26.9%. In the year he also accumulates 16%.

 Wholesale inflation recorded in June monthly growth of 6.5% and 44.1% year-on-year. In the year, he accumulated a 30.3% advance.

 Construction costs increased by 2.5% as reported by the Materials chapter (5.6%). In annual terms, it rose to 29.3%. So far this year, the indicator is accumulating up 16.5%.

 In the first quarter, the real wage decreased by 0.6% compared to the same as compared to December 2017, the decrease is 2.4%

 For next month, a slightly lower but also high monthly inflation is expected, around 2.5%. Although the transfer to devaluation prices will continue to have an impact on inflation, the more restrictive monetary policy and the reduction in economic activity will limit price spikes.

 Although monthly inflation decelerates, market expectations annual inflation exceeds 30% at the end of the year