Monthly inflation for Buenos Aires was 7.3% in July, statistics published by the city government’s statistics bureau showed on Monday. It represents a slight rise compared with June’s figure of 7.1%.

The new data show that inter-annual inflation in the capital was 117.9%, down slightly from 118.6% in June. Prices have risen by 62.3% in 2023 to date.

Price increases in July were driven by the hospitality sector; housing, utility bills and fuel; food and drink; health; and recreation and culture, Buenos Aires city government’s General Directorate of Statistics and Census wrote in its monthly report. 

Hotel and restaurant prices rose by 12.4%, largely as a result of increases in the costs of food served and hotel room rates. For the housing, utilities and fuel sector, the month’s 6.9% increase was driven mainly by rent increases. 

Food and drink prices were up by 5.6% in July. A city government report in mid-July showed that the value of the basic food basket had risen by 124% in the previous 12 months. Monday’s report showed that, in July, bread and grains rose the most within the food category (7.3%). Meat prices, by comparison, rose by 3.2%.

Hefty hikes to book prices had a strong influence on the recreation and culture sector (up 11.5%). In recent months, publishers have said that this is a result of rising paper prices, which booksellers say is having a direct impact on sales.

This is the only official figure that will be published before this week’s primary elections — the Central Bank postponed the publication of its monthly market expectation survey to August 15. The INDEC will publish the national consumer price index the same day.

Economist Federico Glustein told Ambito, the Herald’s sister title, that the Buenos Aires number is “slightly higher” than last month and generally follows the same trajectory as the national inflation rate.

“The national inflation rate will be higher than last month,” he said, adding that utility bills may be a big contributor with increases of up to 400%. “Nuclear inflation is in line with general inflation, meaning that next month we could see higher numbers, considering what could happen after the elections where the result could generate a series of macro effects that will hit August inflation full on.”

Director of C&T Consultores Camilo Tiscornia told Ambito that the Buenos Aires City figure was in line with private estimates and predicted that August would be a difficult month.

“In August we get the corn [agricultural] dollar, increase in meat prices, imported goods. What works in our favor is the height of the winter holidays, which helps in seasonal terms,” Tiscornia said. “I don’t think August will be a calm month for inflation.”