Beef prices increased by 5% in January, accumulating a 74% increase over the last year and matching the rise in farm produce prices: The

The inflation for January was 2.9% as reported by Indec. One of the factors driving the increase in the Consumer Price Index (CPI) is the value of beef. In January, this increase was 4.9% according to the measurement by the Institute for the Promotion of Beef (IPCVA), which surveys the prices of whole beef in the main consumer centers of the country. Meanwhile, in the last 12 months, it increased by 73.4%, more than double the inflation, which was 32.4%. Such variations are related to two issues: the improvements in the quotations of the price of cattle for slaughter, and the inelasticity of domestic demand, which means that the Argentine citizen is not willing to consume less quantity. This means that when the supply goes down a little, the price rises more percentage-wise, something that does not happen with chicken or pork. Beef cattle in the last 12 months increased by 75% on average and this had a lot to do with the drop in supply, which deepened at the beginning of this ...