In the run-up to the report of the Consumer Price Index (CPI) of April by the National Institute of Statistics (INE), which will be announced this Wednesday, May 8, Different experts predict that there will be variations in essential products for this time of year, such as eggs and paraffin.
“Regarding the variation of foods and non-alcoholic beverages, What the market and the agents surveyed expect is that these will have a positive variationmainly affected by carbonated drinks and eggs,” he stated Esteban Viani, economist and academic at the Autonomous University.
“This may be related to the increase in fuel prices.which as we well know is at historic highs, and as it is already quite undertaken, that oil, which is the main source of energy for the transportation of these goods, therefore, That’s where the rise could come from – in a certain way –“added the expert.
The experts’ expectation is that April inflation, compared to the previous month, should be between 0.3 and 0.5% in the monthly data.
DECREASE IN EGG PRODUCTION
The INE reported this Monday that the production of eggs for consumption In March, it showed a twelve-month decrease of 0.4%.
However, this variation was upward in January and February, when it registered an increase of 4.2% and 9.1%, respectively.
Nevertheless, Consumers have expressed increases in the price of said product in recent weeks, a trend that, according to the producer union, could be reversed starting in August.
“We must consider that egg costs also depend a lot on the price of the dollar and the price of raw materials. And there are times when raw materials go down, mainly corn and soybeans, but freight and dollar prices go up. The truth is that doing the equation costs a lot,” said the president of Chile Huevos, Ignacio Correa.
“Today we are seeing problems in Brazil due to flooding, the largest soybean and corn producing area in South America, and we are seeing the stock markets rise again in raw materials. You have to be looking at everything minute by minute,” added the union leader.
The Minister of Agriculture, Esteban Valenzuelapointed out that “during 2023, (the) price of corn was high, and we had bird flu; and that affected a significant part of the industry, around 4%.”
In addition, “in winter, the price of eggs around the world has a higher value”he remarked.
POSSIBLE DECREASE IN THE PRICE OF PARAFFIN
In another area of the household economy, and just when temperatures begin to drop, Increases in the price of paraffin are reported, which is around 1,200 pesos per literwith an increase of around 24% in 12 months.
However, specialists affirm that, due to variations in the price of oil, There should be some fuel declines over the next few weeks.
Economist Juan Ortiz, from the Economic Context Observatory of the Diego Portales University, explained that “possibly the issue of the price of paraffin is going to be lowerbecause it partly captures the dynamism of a lower oil price, in the sense that the price of oil fell from last week, which was around $88 a barrel, to where the price is currently around $83 a barrel.”
“And also added to the significant rise in the price of copper in the international market”indicated the specialist.
“With a relatively more appreciated exchange rate and a drop in the price of Brent oil, which is already around $83.84 per barrel, What we should expect is that the import parity price in pesos would tend to be lower during the month of May, which would mean that in practice the final consumer price would have to be lower in May compared to what was observed in April.“, he deepened.
“On the other hand, the question arises, given that the seasonal demand for paraffin increases as a result of a colder climate, this should also in theory cause the price to increase, but the answer in practice is no, why? : because to the extent that it is a product that is imported, the price in the local market is fundamentally determined by external factors,” Ortiz explained.
On the website www.bencinaenlínea.cl You can check fuel prices, including paraffin, at nearby service stations based on geolocation.
