The downward trend shown by the consumer price index will not be sustained in June, as a consequence of the increase in electricity and gas rates, specialists estimate. Thus, inflation this month would be above the 4.2% that May showed, the lowest level in the last year.
The announced increase in gas and electricity rates would put a 1% floor on the cost of living.
In order to reduce spending on subsidies, a reduction in subsidies in energy services for businesses, industries and residential users was ordered for June. The increases will reach up to 20% in the case of gas and 95% in the case of electricity.
The increases will also be greater for those who consume more energy.
Rates have an increasingly greater share in household spending, which suffers a strong loss of purchasing power, which explains the recession scenario.
The Argentine economy will fall by 3.5% this year, according to international consultants and organizations such as the World Bank.
In addition, pollsters 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, could get worse in the coming months.
It is estimated that the State will provide subsidies of about US$6.5 billion this year, well below the almost US$9.7 billion in 2023.
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.
