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The population’s consumption has shifted to Javier Milei’s management with positive data, according to recent reports. Several factors have contributed to this trend. One of the explanations for the retail sales statistics for the year is an attitude of prevention among consumers. They are defending their purchasing power from inflation and fear of a new devaluation, which has led them to spend more on appliances and stock up at supermarkets.

In addition, the “substitution” effect has played a significant role in this trend, as those who cannot travel or buy a house are redirecting their money towards other areas of spending. For instance, the indicator of the Argentine Chamber of Commerce (CAC) showed an interannual increase of 2.5% in sales during the first nine months of the year. Similarly, the Argentine Confederation of Medium Enterprises (CAME) was surprised by a 4.7% increase in the volume sold in October when a decline had started last March.

Furthermore, specific measures such as massive consumption have also increased significantly over time. For example, packaged products sold in supermarkets and neighborhood self-service stores increased by 1.5% throughout the year according to Scentia data, while Nielsen IQ reported an interannual variation until September that reached 7.4%, with an average price increase of 112.8%.

However, economists predict that these consumer tactics will likely worsen in coming months with Javier Milei’s election as President and rising expectations for higher inflation starting in December. This is expected to impact purchasing power even further and prompt consumers to adjust their budgets accordingly until they see changes in this trend.

By Editor

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