The recent announcements about the removal of subsidies in the rates that are going to increase electricity, gas and water bills will add greater tension to the family budget as of September. Taking into account the evolution of inflation that occurred during the past month, a typical family living in the City of Buenos Aires already needed $229,859.24 to meet all their monthly expenses, according to the survey carried out by the Center for Education, Services and Consumer Advice (CESyAC).
Of this amount, $64,526.16 (28%) were needed to buy mass consumption products and $165,333.08 (72%) were needed to contract basic services for the home.
This report reflects the consumption that a typical family may have: a married couple with two school-age children who live in the area of Buenos Aires. The survey includes, among several items, house rent, car expenses 10 years old, the payment of prepaid medicinethe fee for a private school of two children and the family subscription in a club.
This higher proportion of spending allocated to services is due to the fact that in recent months the increases in fees for private schools, in prepaid medicine, medicines and also in expenses have been growing above general level of inflation and hit middle-class consumers the hardest.
In July, headline inflation, according to INDEC, averaged 7.4%, the highest in the last 20 years, with a variation that reached 71% year-on-year. However, in the measurement of the products and services of this private survey, the inflation of the month was in the order of 3.23% and the year-on-year price variation was 55.10%.
The most relevant increases in the category of mass consumption products were in fruits and vegetables (16.63%) and packaged groceries (10.60%). In the latter case, boosted by a greater demand of the people when stocking as a strategy to beat inflation.
As for basic services, the most resounding increases were registered in the rate of the water (20%), expenses (12%), medicines (5.44%) and prepaid medicine (4%).
According to these elements surveyed, it can be deduced that a family needed in July $7,661.97 per day to meet monthly expenses: $2,150.87 to purchase mass consumption products and $5,511.10 to hire basic household services.
According to Fernando Barrera, leader of the CECyAC, “in a year-on-year comparison, they also detected sidereal climbs in the same product”, he pointed out. This was the case of the kilo of white onion that became 306.65% more expensive (it cost $49.48 in August 2021 and is currently worth $201.22) or the liter Plusbelle Shampoo that went from $143.03 to $425.72 , which represents a variation of 197.64% in one year. Toilet paper (Higienol brand of 4 units), on the other hand, was worth $135.62 a year ago, while now it is $304.85 (124.77% more expensive).