Inflation: the NEA reached 2% in July and is the region with the highest cumulative increase of the year

The National Institute of Statistics and Censuses (INDEC) reported that inflation in Argentina’s Northeast region (NEA) reached 2% in July 2026, slightly below the national rate of 2.1%. However, this monthly figure masks a more pronounced trend when considering cumulative data over the year. The NEA led the country in both annual and cumulative inflation rates, with prices rising 22.3% since December 2025, three percentage points higher than the national average of 19.3%. This makes the NEA the region with the highest price increase so far in 2026. In comparison to other regions, the NEA was followed by the Northwest at 20.2%, Greater Buenos Aires at 19.4%, the Pampas at 19%, Cuyo at 18.6%, and Patagonia at 17.5%. Interannually, the NEA recorded an inflation rate of 36.9%, surpassing the national average of 33.8%. These figures highlight a growing disparity in inflation trends across different parts of the country. By category, Education was the fastest-growing sector in July, with a 7.5% increase. Recreation and culture rose by 4%, while Housing, water, electricity, gas, and other fuels increased by 3.9%. Health services saw a rise of 2.7%. Food and non-alcoholic beverages, one of the largest components in household expenses, increased by 1.5%, contributing 0.56 percentage points to the overall inflation rate for the month. Key contributors included vegetables, dairy products, bread, and cereals. Other sectors showed more moderate increases. Communication rose by 2.3%, while Restaurants and hotels advanced by 2%, and Miscellaneous goods and services increased by 1.9%. Below these levels were Home equipment and maintenance, up 1.4%, and Transportation, up 1.3%. Clothing and footwear remained unchanged during the month in the NEA. One notable aspect of the report was the difference between goods and services. During July, goods in the NEA increased by 1.4%, whereas services rose by 3.7%, exceeding the national average of 3.1% for services. The composition of the index also revealed distinct patterns: seasonal products increased by 3.6%, while regulated prices climbed by 2.9%. Core inflation, which excludes seasonal and regulated items, stood at 1.5% in the NEA, lower than the national core rate of 1.8%. The report also highlighted a concerning trend in housing costs. Between December 2025 and July 2026, Housing, water, electricity, gas, and other fuels surged by 51.7% in the NEA. Education accumulated a 41.1% increase, and food and non-alcoholic beverages rose by 23.2%. When comparing to the same period in 2025, housing and basic service costs jumped by 72.8%, education by 45.8%, and food by 40.7%. These figures underscore the increasing financial burden on households in the region. The data reflects broader economic pressures, with inflation continuing to erode purchasing power and strain household budgets. As the year progresses, further analysis will be needed to assess how these trends evolve and their potential impact on consumer behavior and policy responses.