Utilities and transportation pressed harder than inflation in Greater Buenos Aires

The Consumer Price Index (CPI) accumulated a year-over-year increase of 33.5% through August, according to Indec. However, several essential services rose above that average and reduced households' disposable income.

In Greater Buenos Aires (GBA), the Housing, water, electricity, gas and other fuels division advanced 45.3% over twelve months. Within that category, electricity, gas and other fuels registered an increase of 55.4%, while rents rose 42.7%.

Transportation also showed an evolution above the general price level for the region, which was 33.7%. The division increased 38.6%, driven by a 52.1% rise in public transportation and 50% in fuels and lubricants for household vehicles.

The bus fare adjustment in Buenos Aires province contributed to that result. The scheme includes adjustments linked to inflation and, in some months, additional increases were authorized, bringing the ticket price above $1,100 in September.

Other regular expenses also exceeded regional inflation. Education increased 41.8% and communication 38.2% in GBA, while telephone and internet services advanced 38.6%. Healthcare, meanwhile, registered a change of 33.3%, just below the general average.

Economist Alejandro Giacoia noted that services increased 2% in August, compared to 1.7% for the general index, and estimated that public utilities accumulated an increase near 50% over twelve months. According to his analysis, since these are expenditures difficult to defer, families must allocate a larger share of their income to cover them and have fewer resources for other goods.