Why the middle class of the Metropolitan Area now feels inflation more

Although families allocate a greater part of their income to purchasing food, in April public and private services had a greater impact in the inflation data in the Capital and Greater Buenos Aires (GBA). For this reason, the Salaried or professional middle class households in the Metropolitan Region “feel” inflation morealthough the average index is in single digits.

From the INDEC data it appears that On average in Capital and GBA inflation was 9.2% (versus 8.8% national average), the highest index in relation to the rest of the regions. And while food prices increased 5.7%, the housing, electricity, gas and water and fuels registered a increase of 40.4%.

In turn, of the 9.2% average inflation, food was responsible for 1.6 points, while housing, water, electricity, gas and other fuels were responsible for 2.62 points. In housing expenses, the weight of the expenses increase well above income of owners or families who rent, while there is still new rate increases pending in the services.

In the first four months of this year, in the Metropolitan Region the food rose 59.9% and those services almost doubled: 114.9%, followed by communications with 106.5% and Education with 84.7%.

Meanwhile, only the rates of gas, electricity and others fuels they had a increase of 261.6%.

This disparity would remain in the coming months since the rates of public and private services in the Metropolitan Region still have an important way forward, according to the official announcements themselves. And food prices mark a slowdown because they are feeling the reduction of purchasing power of both lower-income families and those of the middle class. Added to this is the deterioration in employment levels, even among registered personnel.

A extenuating This is what could happen with prepaid if the increase is applied according to accumulated inflation. Between January and April, they registered an increase in the quota of 141.8% in Capital and GBA versus an average inflation of 67.4%.

For its part, the total family basket of a typical family in Capital and GBA totaled $828,158.19 in April when half of the registered workers have a gross salary of around $700,000. Thus, despite the slowdown in food prices, poverty levels remain above 50%.

NE