Inflation in the City of Buenos Aires accelerated again in July and reached 2.9%, one percentage point above the 1.9% recorded in June. With the new data, the accumulated increase since January reached 19.4% and the change over the last twelve months stood at 33.2%. The change interrupted the relief of the previous month and showed that the cost of living in Buenos Aires continues to face pressure from expenses that households cannot postpone.
The difference between goods and services explains a large part of the movement. Goods increased by 1.4%, while services rose by 3.8% during July and accumulated 36.1% year-on-year. Housing, water, electricity, and gas together rose 2.7%, driven by expenses, rents, and adjustments to the residential electricity rate. That pattern shifted the center of inflation toward bills and monthly commitments of greater rigidity.
Transportation increased by 3.1%, influenced by urban fares and air services. Regulated prices, for their part, rose by 3%: private school fees went up 4.1%, health expenses increased by 2.4%, and telecommunications also rose. Core inflation, which excludes regulated and seasonal components, ended at 2.2%, so the overall jump was not due to a single category but to the combination of tariffs, services, and seasonal consumption.
Food and non-alcoholic beverages registered an average variation of 1.9%, but the aggregated data concealed strong movements in essential products. Vegetables, tubers, and legumes increased by 9% in thirty days, dairy products and eggs by 2.2%, and bread and cereals by 1.6%. The disparity implies that each family's concrete experience depends on how much they allocate to fresh food, housing, transportation, and other fixed expenses.
The seasonal component climbed 10.9% during the winter break. Within that group, gastronomy and hospitality increased by 5.3%, and recreation by 5.8%. The categories linked to vacations thus added to the pressure of permanent services. The result from Buenos Aires can offer a signal for the next national data, but it does not determine it: the INDEC index uses its own geographical coverage and methodology and still needs to be published.
The comparison that remains open will be between the Buenos Aires measurement and the national CPI for July. The 2.9% for the City sets a higher precedent than that of June and shows that the relative stability of many goods was not enough to offset the increases in services, regulated and seasonal. For households, the central data is not only the monthly rebound, but the concentration of increases in commitments that recur every month and reduce disposable income.
