Dairy Products as Inflation Anchor in Argentina
Source: dairynews.today
Dairy products in Argentina are acting as a counterweight to inflation compared to other food basket items.
Dairy products in Argentina are emerging as an unexpected inflation anchor, according to recent data. During March, dairy prices increased significantly less than other food items, thereby slowing the inflation rate that reached 3.7% in the general consumer price index (IPC) and 5.9% in food categories.
The National Institute of Statistics and Censuses (Indec) highlighted that non-alcoholic food and beverages grew by 5.9% in March, with a 11.4% quarterly increase and a 45.6% year-on-year surge from March 2024. In contrast, milk, dairy products, and eggs saw only a 1.6% price rise in March.
The Argentine Dairy Chain Observatory (Ocla) noted that while egg prices spiked by 8.2%, dairy products alone rose by just 1%. This trend provides a promising outlook amid rising incomes, suggesting a potential recovery in consumption levels. March also witnessed a 3.4% decrease (in constant currency terms) in the price of regular whole milk per liter compared to the previous month, marking a slight 0.2% increase in current terms. Year-on-year, this price remains 15.7% lower than the previous March, adjusted by IPC.
The National Institute of Statistics and Censuses (Indec) highlighted that non-alcoholic food and beverages grew by 5.9% in March, with a 11.4% quarterly increase and a 45.6% year-on-year surge from March 2024. In contrast, milk, dairy products, and eggs saw only a 1.6% price rise in March.
The Argentine Dairy Chain Observatory (Ocla) noted that while egg prices spiked by 8.2%, dairy products alone rose by just 1%. This trend provides a promising outlook amid rising incomes, suggesting a potential recovery in consumption levels. March also witnessed a 3.4% decrease (in constant currency terms) in the price of regular whole milk per liter compared to the previous month, marking a slight 0.2% increase in current terms. Year-on-year, this price remains 15.7% lower than the previous March, adjusted by IPC.
