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Argentina’s Sistema de Información de Precios al Consumidor (SIPC) released its May 2025 consumer price report this week, revealing mild deflationary signals in key food and hygiene products amid persistent inflationary pressure on other goods.
A comprehensive price survey conducted by 683 retail outlets including supermarkets, self-service shops, and pharmacies showed price reductions in 73 products, with an average drop of 2.14%, while 108 products increased in price by an average of 1.45%.
Price Drops in Everyday Essentials
The most notable declines were seen in:
- Butterhead lettuce: ↓ 29.27%
- Crispy lettuce: ↓ 15.83%
- Paty beef burger (2 units): ↓ 9.73%
- Hellmann’s mayonnaise (500g): ↓ 9.07%
- Cololó wheat flour (1 kg): ↓ 6.18%
These reductions are significant amid Argentina’s volatile pricing landscape and may reflect seasonal supply, improved logistics, or temporary retailer discounting tactics.
Moderate Increases in Other Staples
Conversely, 108 items recorded price increases, most notably:
- Ottonello frankfurters: ↑ 9.93%
- Azucarlito white sugar: ↑ 9.06%
- Artesano grated cheese (80g): ↑ 7.15%
- Navel oranges: ↑ 5.23%
- Ottonello cooked ham: ↑ 5.16%
These increases signal supply chain friction and demand fluctuation, especially in proteins and fresh produce, despite broader price control mechanisms in place.
Stability in Private Labels and Core Basket
- 29 items remained price-stable.
- Among private-label/store-brand products:
- 4 items were unchanged
- 1 item decreased
- 1 item increased
This reflects moderate stability in basic consumer goods, possibly due to government oversight, retailer policy, or market saturation in these SKUs.
Economic & Policy Context
With year-on-year inflation still above 200%, Argentina continues to rely on monthly SIPC monitoring as a consumer protection mechanism, aiming to:
- Promote transparency
- Inform regulatory intervention
- Guide social policy decisions
The slight downward adjustment in essential food prices could serve as a leading indicator of easing retail inflation or merely a seasonal blip.
Policymakers and investors alike will be watching upcoming June and July data closely for clearer trends before the next Central Bank rate decision.
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