Hidden social costs of inflation slowdown in Córdoba

A report shows that while 2025 inflation closed at 31.4%, more than half of Córdoba households cannot cover the basic food basket, and nearly 90% must go into debt to eat. The drop in consumption and income deterioration push thousands of families into a 'daily default'. This reopens the debate on poverty measurement in the province.

The Statistics Institute of the Córdoba Grocers Center released a report exposing the social cost behind the inflation slowdown in Córdoba. While 2025 annual inflation fell to 31.4%, more than half of households in the province cannot afford the basic food basket. Nearly 90% of families go into debt to access food, leading to a 'daily default' for thousands.

The decline in consumption and real income deterioration worsen this situation. Meanwhile, a 2019 scientific experiment in Córdoba challenged the basic basket's composition, which has remained unchanged for decades. That study showed that following such a diet harms health within months, focusing on filling the stomach without proper nutrition.

In 2026, with rising prices and stagnant wages, data on child malnutrition and purchasing power loss heighten the issue. The report warns that this 'financed hunger' highlights a hidden impact of economic policies, where inflation control comes at the expense of social welfare. It raises questions about what poverty truly measures in the region.

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Chileans celebrate poverty rate falling to 17.3% per Casen 2024 survey, with graphs showing decline and subsidy reliance highlighted on a Santiago billboard.
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Chile's poverty rate falls to 17.3% according to Casen 2024

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The Chilean government presented the Casen 2024 survey results, showing income poverty dropping to 17.3%, equivalent to nearly 600,000 fewer people than in 2022, under a more stringent methodology. However, the poorest households increasingly rely on state subsidies, which now make up 69% of their income. Extreme poverty stands at 6.9%, while multidimensional poverty falls to 17.7%.

Colombia's inflation is projected at 4.9% for 2026, missing the Banco de la República's target range for the sixth consecutive year. A Corficolombiana report estimates it will close 2025 at 5.2%, roughly the same as last year, signaling a stall in disinflation. The goal of nearing 3% is now delayed until 2027.

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Following projections of around 5.2% for year-end 2025, Colombia's National Administrative Department of Statistics (Dane) reported actual annual inflation of 5.1% for December 2025, down 10 basis points from December 2024. This below-expectation figure underscores persistent pressures in housing, services, and food amid minimum wage hikes, as the central bank eyes interest rate moves.

Fernando Savore, vice president of the National Federation and the General Confederation of Grocers, explained on Canal E how consumption in supermarkets and stores has changed due to inflation and digitalization. He noted that large purchases have decreased, favoring small restocks in neighborhood stores. He also highlighted the rise of virtual payments and price adjustments in food.

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Argentina's Central Bank released its latest Market Expectations Survey, drawing from 45 analysts' projections, estimating 2.4% inflation for January 2026 and a dollar rate of $1,475 in February.

President Gustavo Petro blamed the Banco de la República's high interest rates for the housing sector's contraction, which has seen 10 consecutive quarters of decline. The leader stated that these positive and growing real rates have prevented users from affording payments. Analysts, however, emphasize the drop in social interest housing as the main factor.

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Low-income households in South Africa struggle to afford nutritious food amid rising inflation, with the Social Relief of Distress grant falling short of covering basic needs. Recent data shows food prices climbing, exacerbating malnutrition in vulnerable families. Civil society groups urge stronger government action to ensure food security.

 

 

 

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