Argentina registers the largest price increases in footwear

In an inflationary context, where in the last 12 months the average of the general increases exceeded 52%, according to INDEC -the official organ of economic measurements-, the Argentine Institute of Fiscal Analysis (IARAF) released a report which indicates that Argentina is the country where the relative price of footwear and clothing grew the most between September 2017 and September 2021.

The study was carried out among 42 countries in the world, where it was shown that in Argentina the relative prices of footwear and clothing grew by 7.8% between September 2017 and the same month of 2021.

The analysis details that only Argentina and Japan were the countries that registered relative price increases for these products, when overall there is a clear downward trend.

Among the countries with the smallest drop in relative prices are Switzerland (-0.8%), India (-0.9%) and Spain (-1.8%). At the other extreme, Turkey recorded a drop in the relative price of Footwear and Clothing of 24.0%. Meanwhile, the 5 countries with the greatest price drop are completed with Chile (-18.2%), Poland (-17.5%), Norway (-16.1%) and Israel (-15.6%).

The IARAF report states that “taking into account that in Argentina wages had a nominal evolution lower than that of the general price level, it can be affirmed that it lost even more purchasing power in terms of footwear and clothing. In other words, there was an impoverishment of those who had an income evolution lower than the general price level, in this sector”.

According to the Consumer Price Index (CPI) measured by INDEC, the footwear and clothing chapter rose 5.1% in October and accumulated a rise of 62.2% in the last 12 months. This confirms that it is the sector that increased the most of the 13 segments measured by the body. In the same period, the general CPI increased 52.1%.

In consumer entities and official areas, this situation is analyzed, in order to promote a review of the cost structure. So far, the sector does not have price regulation by the government, as is the case with food and medicine.

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