Wholesale prices increased in June above inflation

The wholesale prices advance in the UN 7.5% in Junemarked an interannual rise of 112.8% and accumulated an increase of 47.4% during the first semester of 2023, as updated this afternoon by the National Institute of Statistics and Censuses (INDEC).

Thus, the Wholesale Internal Price Index (IPIM) went against the lower inflation of the sixth month of the year, had an advance of 6% and a slight slowdown compared to previous months (7.8% in May and 8.4% in April).

However, if one looks at the accumulated up to June, the Consumer Price Index (CPI) grew above its wholesale cousin to be located in 50.7% according to the latest report published by INDEC on July 14.

Economic activity fell 5.5% year-on-year in May

Wholesale inflation: the reasons behind the rise in each index

The variation of the IPIM is directly connected to the 7.3% increase in domestic products and 9.7% in imported products. The third category appeared in the indicator, Manufactured goods and electrical energy, it also showed an increase of 7.6%.

As for the Wholesale Basic Internal Price Index (IPIB)excluding the tax effect, showed an increase of 7.3% in the same period explained by the escalation of 7.0% in domestic products and 9.7% in imported products.

Regarding the general level of the Basic Producer Price Index (IPP)which measures the variation in the prices of local production without taking taxes into account, grew at a rate of 6.6% in June as a consequence of the 4.3% rise in Primary products and 7.5% in Manufactured products and electric energy.

The cost of construction also rose in June

He Construction Cost Index (ICC) in Greater Buenos Aires posted an advance of 5.6% regarding mayonnaise, which includes an interannual growth of 113.7% and accumulated growth of 44.9% so far in 2023. The monthly figure reflects a slowdown when compared to May (7.2%).

The segment that increased the most in the sixth month of the year was General expenses (10%), followed by Materials (7.1%) and Labor (3.2%). Regarding interannual variations, the first item rose 117%, the second 120.3% and the last 106.6%. Accumulated accumulation in the first semester of 2023 was 53.1%, 44.9% and 43.2% respectively.