Wholesale Inflation Continues to Slide Despite Economic Uncertainty: Analysis of IPIM, IPIB and IPP for Q1

In March, the Domestic Wholesale Price Index (IPIM) showed its third month of slowdown, with a 5.4% decrease compared to February. This was below the Consumer Price Index (CPI) of 11% reported by Indec last month. Despite this, the general level of the IPIM increased due to a 6.2% rise in national products, partially offset by a 1.7% decrease in imported products.

The first quarter closed with a 37% increase in wholesale inflation, reaching 10.2% in February and 18% in January. The IPIM measures the average evolution of prices of products of national and imported origin in the domestic market, excluding the value of exports in the calculation of relative weights for each activity.

The Basic Domestic Price Index (IPIB) showed a 4.9% increase in the same period, with a 5.6% increase in domestic products partially offset by a 1.7% contraction in imported products. The IPIB does not include the tax effect mentioned in the IPIM, making it an alternative analysis indicator that distinguishes price movements resulting from changes in tax policy from those resulting from producer decisions.

Additionally, the Basic Producer Price Index (IPP) recorded a 5% increase last month, with a 5.1% rise in primary products and 5% in manufactured products and electrical energy. The PPI measures the average variation in prices received by local producers, excluding imported goods and including exports in the weighting of each activity, with the same tax treatment as the IPIB