SEIDO High Frequency CPI: Inflation was 1.8% WoW

Weekly inflation accelerated. Consumer prices grew 1.8% WoW, higher than in the previous week (1.2% WoW -revised-). The monthly printing was 5.3% MoM, below the previous 5.4% MoM (revised). The interannual rate was 106.9% YoY (vs 104.7% YoY -revised-).

Core inflation sharply increased while seasonal items remained cool. Weekly core inflation was 2.5% WoW, significantly above the previous 0.8% WoW (revised) and the highest value since July, while its monthly printing was of 4.3% MoM (above previous 4.2% MoM -revised-). In addition, prices of seasonal items rose 0.9% WoW, not very different from the previous value (0.8% WoW -revised-), and the monthly rate was 9.1% MoM (vs 10.1% MoM -revised-). Lastly, regulated prices increased 0.2% WoW, while their monthly printing was of 4.1% MoM (up from previous 3.7% MoM -revised-).

Prices of dollarized and non-dollarized items heated up significantly. The weekly printing for dollarized items inflation was 2.5% WoW, sharply above the previous 0.8% WoW (revised), while the monthly printing was 4% MoM (vs previous 4.1% MoM -revised-). Likewise, non-dollarized items inflation was 2.2% WoW (vs previous 0.9% WoW -revised-), and the monthly figure grew to 4.4% MoM (vs previous 4.2% MoM -revised-).

Food and Beverages prices increased rapidly. Our monitoring of Food & Beverages shows a weekly variation of 2.6% WoW, much higher than the previous 0.5% WoW (revised). In addition, the monthly figure was of 5.3% MoM, a small drop from the previous 5.6% MoM (revised).

The distribution of price changes continued changing. The fraction of our monitored prices increasing 4% or more per month was of 49%, a noticeable increase from the previous 41%, but still significantly below the August peak of 84%. Moreover, a further 22% of prices are growing between 2% and 4%, slightly below the previous 25%. Lastly, 29% of our monitored prices are rising less than 2%, a large drop from the previous 30%.