They anticipate that the increase in electricity and gas rates will raise the inflation expected for June

The inflation forecast for June will be higher than that of the current month as a result of the increase in electricity and gas ratesas estimated by specialists when pointing out the sharp drop in the purchasing power of the working class.

In this way, the consumer price index monitored by Indec it would be above the 4.2% that May showedthe lowest level so far in the last one.

Inflation in May was 4.2% and in the last twelve months it accumulated 276.4%

The announced increase in gas and electricity rates, which will reach 20% and 95% respectivelythey would put a 1% floor on the cost of living.

Cost of living

In this way, the downward trend shown by the consumer price index will not be sustained in June, according to estimates made by sector specialists.

In order to reduce spending on subsidies, a reduction in subsidies in energy services for businesses, industries and residential users was ordered for June, whose increases will be greater for those who consume more energy.

It is estimated that the State will provide subsidies for about US$6.5 billion this yearwell below the almost US$9.7 billion in 2023.

The Energy subsidies in 2024 will decrease due to the fall in international LNG prices and the increase in natural gas transportation capacity from the Neuquén basin, which reduced the cost of supply.

Rates and subsidies

Rates have an increasingly larger share of household spendingwho have suffered a strong loss of purchasing power since the end of last year and so far this year, as a result of the economic policy promoted by the national government.

Furthermore, pollsters They began to notice that people’s concern is shifting from inflation to the sustainability of employment.

The loss of jobs, which exceeded 120 thousand jobs in the first quarter, it could worsen in the coming months.

This explains the recession scenario, with an annual drop of 3.5%, according to consultants and international organizations such as the World Bank.