After two consecutive months of low economic activity, inflation in May was 1.5%

The Institute of Statistics and Censuses (Indec) released the index of May inflation and pointed out that cost of living increased 1.5% in the past month.

As in April, when it reached 1.5% which was the lowest number in three years, in May the figure also fell below 2% as a result of the quarantine so there was very little economic activity and that all that happened in a context of recession, falling consumption and strong monetary issue.

With this number, Accumulated inflation since 2020 began is 11.1%, taking into account that of the five months that were measured, there were two of almost no activity and that lat frozen utility rates, from the private sector they already speak that in reality what is being experienced in a process of price rise contained. If the 12-month accumulation is taken, the cost of living increased by 43.4 percent

According to the latest Market Expectations Survey (REM) of the Central Bank, retail prices registered an average rise of 1.7% in May.

Inflation for May was 1.5% monthly, practically the same as we had advanced at the beginning of the month (our survey gave 1.6% monthly). The number remained stable in the comparison with April, influenced by the same factors: at quarantine it kept businesses closed (although less than before), so some prices did not change, “Matías Carugati of the Seido consultancy told Infobae.

For the specialist, it was also observed that the drop in demand “caused price drops” in some areas. to which is added the continuity of frozen regulated prices and that the official exchange rate “depreciates at a constant and relatively low rate, which has not added strong pressure on prices.”

But for Carugati this could be the last month in which the IPC shows these numbers as it understands that forward “we could expect some acceleration due to the impact of the new exchange rate regulation (importers who were” pushed “to the CCL), but still it doesn’t show in our measurements. ”