Buenos Aires Herald 
July inflation was 6.3% according to the National Institute for Statistics and Census (INDEC, for its Spanish acronym), a 0.3% jump compared to June — putting an end to a two-month deceleration.
Year-on-year inflation hit 113.4% and the total inflation for the first seven months of 2023 was 60.2%, according to Tuesday’s report.
While high, July’s numbers still don’t reflect the 22% devaluation implemented on Monday, which took the official US dollar exchange rate to AR$350. August’s figures, the first since the latest peso drop, are scheduled to be published on September 14.
Food and non-alcoholic drinks had the most significant influence on the index with a 5.8% monthly increase, according to the INDEC. The price hikes had the most impact due to the category’s weight on the index and were driven by increased bread, cereals, meats, and meat and animal derivatives.
The “communications” category, which groups internet and phone services, saw the biggest increase with a 12.2% hike. It was followed by “recreation and culture” with an 11.2% jump driven by higher prices of tourist packages, then by “alcoholic drinks and tobacco,” which had a 9% increase.
Inflation is a running topic in this year’s presidential election, as Economy Minister Sergio Massa is the ruling coalition’s candidate. Massa had calculated a 60% price increase for 2023 in this year’s budget. For this number to reflect reality, prices should go down by 0.2% during the rest of the year, something no consulting firm is expecting to happen.
“[The government] continues to destroy the Argentines’ money,” Patricia Bullrich, Juntos por el Cambio (JxC)’s presidential candidate said in a Twitter post. “We have the inflation of a country that’s adrift. We are going to sort out this chaos.”
The Central Bank published July’s Market Expectations Survey (REM, by its Spanish initials) hours later on Tuesday. The report said that consulting firms and banks had, on average, predicted an inflation rate of 7% for the month and pointing out that it was in fact 0.7% lower.
Last month the financial entity announced that the REM would be published after the publication of the INDEC’s report for the first time and not before, as it was initially conceived.
According to a government source, the decision was made “due to mistakes made by the consulting firms in the inflation estimates of the previous months” but consulting firms who participate in it told the Herald that it was a strategic move for the elections.
Updated on Tuesday August 15 at 20:17 to include the REM
