A series of events are expected in July. increases about services that will affect the pockets of citizens in the midst of the inflationary context Argentina is going through and salaries are not able to compensate for what was lost in the first quarter of the year. Knowing what increases in the month allows you to better plan your expenses, so in this note we leave you everything you need to take into account.
One by one the increases in July
Rentals
Tenants who signed a contract under the Rental Law – which updates the annual price through the Rental Contract Index (ICL), which combines inflation and wages – will have a increase that will be around 240%. This formula applies only to rentals started between July 1, 2020 and October 17, 2023.
Beyond the repeal of Law 27,551 with the mega DNU promoted by the management of Javier Milei, contracts in progress must be respected until their expiration date. This means that as long as the agreement is in force, all terms and conditions will remain in effect until the time of its termination.
In this way, if a person began renting on July 1, 2023 and faces, then, their first annual update based on the index prepared by the BCRA, will have an increase of 244.4%. If you paid $150,000 per month a year ago, you will now pay $516,600 per month for the same home until July 2025.
Naphtha and diesel
The Gasoline prices should increase by an average of 12.5% and Diesel will rise by 10% this Monday, July 1st. That is if the update that the Government has been postponing on the taxes on liquid fuel (ICL) and carbon dioxide (IDC) is applied, which is transferred directly to the final values. The Government must decide whether to transfer the entire update or, as in June, segment it to curb the impact on prices. To this increase, the decision of the oil companies will be added. So far in 2024, the prices of gasoline and diesel have accumulated an average increase of 63.65%.
Prepaids
Following the legal dispute following the presentation made by the Government, the private medical companies agreed that from July the tariffs will be adjusted “freely”. In addition, they committed to return in 12 months what was collected above inflation between January and April. In this way, for the seventh month of the year at least four large companies informed their members that the increases in fees will be around 6.7% and 8.5%.
Telecommunications
Companies began to inform their clients that, starting in the first days of July, they will carry out a new tariff adjustment, with a increase that will be between 6 and 9%depending on the service and the operator.
Electricity and gas rates
In the particular case of electricity and gas rates, some decisions still need to be made official. The Government’s forecasts were adjust for future inflation from July. This is a new update calculation, but It remains to be seen how the calculation will be made.
Initially, the economic team had set a formula which took into account the wage variation, the consumer price index (CPI) and wholesale inflation (IPIM)although its implementation was suspended in May and June by order of the Minister of Economy, Luis Caputo.
Rates are what will increase the most in the month of July.
