Enhancements have been implemented within the Commission to bolster the productivity of the domestic market.
In a significant development, the Wholesale Price Index (IPIM) for August 2023 has shown a substantial increase of 3.1%. This rise in wholesale prices, according to analysts, is a precursor to a broader inflationary trend in the coming months.
The Wholesale Price Index, it should be noted, measures the variation in values at which producers and importers sell in the domestic market, including taxes. It includes both national and imported products, making it a comprehensive gauge of the current economic climate.
The increase in wholesale prices, particularly, is attributed to the depreciation of the currency, which has a greater impact on wholesale prices due to having less non-tradable component. This depreciation, it's important to note, takes between 9 and 18 months to impact consumer goods and services directly. However, the immediate reflection of the currency's devaluation can be seen in the Wholesale Price Index.
The division with the highest impact on wholesale inflation in August was "agropecuarian products". The increase in national products was 3.1%, while the increase in imported products was 2.9%. The Wholesale Price Index for Basic Items (WPIB), which excludes the tax effect of the WPI, also showed a similar trend, increasing by 21.7% in August.
The general inflation in August was 1.9%, a figure that private analysts now expect to surpass in September 2023. The reasons for this anticipated increase include rising energy prices, supply chain disruptions, and increased consumer demand. As a result, it is estimated that the monthly inflation in September will be greater than 2%.
This expected acceleration in inflation is likely to result in a loss of purchasing power of the currency, as the IPC (Consumer Price Index) is expected to accelerate in the coming months. It's crucial to keep a close eye on the evolution of the dollar in the coming days to gauge whether there is a transfer of inflation pressure.
In conclusion, the recent surge in wholesale prices, driven by the depreciation of the currency, indicates a potential inflationary trend in the coming months. This trend, if confirmed, could lead to a loss of purchasing power of the currency, making it essential for consumers and businesses to stay informed and adapt accordingly.
