World

Argentina is the country in which the price of clothing and footwear increased the most in the last 4 years

The study included all types of clothing and textile materials such as fabrics and yarns;  for both men, women or children, both underwear and outerwear
The study included all types of clothing and textile materials such as fabrics and yarns; for both men, women or children, both underwear and outerwear

Inflation continues to be a scourge for Argentine society that the different governments have not been able to counteract in recent years and that continues to hit the pockets. In the last twelve months it has already exceeded 52%, according to Indec. In this context, the Argentine Institute of Fiscal Analysis (IARAF) released a report that indicates that Argentina is the country where the relative price of clothing and footwear grew the most between September 2017 and September 2021.

From the study carried out among 42 countries in the world, it was concluded that in Argentina the relative price of clothing and footwear grew by 7.8% between September 2017 and September 2021, registering the largest increase in the sample. Relative price refers to clothing and footwear divided by the general price level.

Source: IARAF
Source: IARAF

In this sense, only Argentina and Japan (0.7%) showed a rise in the relative price of clothing and footwear, according to IARAF. While in the remaining 40 countries these goods became cheaper compared to the general price level.

Among the countries with the lowest relative price drop are Switzerland (-0.8%), India (-0.9%) and Spain (-1.8%). At the other extreme, Turkey recorded a drop in the relative price of Clothing and Footwear of 24.0%. The batch of the 5 countries with the greatest price drop is completed with Chile (-18.2%), Poland (-17.5%), Norway (-16.1%) and Israel (-15.6%).

Source: IARAF
Source: IARAF

According to the IARAF, Argentina had a reduction until September 2019 (-12.7% between September 2017 and September 2019). Then a growing trend began, reaching a maximum relative price at the end of the period considered (with a rise of 23.5% between September 2019 and September 2021).

“Taking into account that in Argentina wages had a nominal evolution lower than that of the general price level, it can be said that it lost even more purchasing power in terms of clothing and footwear. In other words, there was an impoverishment of those who had an income evolution below the general price level, in terms of clothing and footwear”The report highlighted.

Only Argentina and Japan (0.7%) showed a rise in the relative price of clothing and footwear, according to IARAF. While in the remaining 40 countries these goods became cheaper compared to the general price level

It should be noted that the growth of a relative price implies that more and more units of other goods are required to continue buying the same unit of that good. “When contrasted with the nominal salary, it means that each time a greater portion of the salary has to be allocated to acquire the same basket of clothing and footwear as before,” IARAF stated.

The study included all types of clothing and textile materials such as fabrics and yarns, for both men, women or children, both underwear and outerwear. It also covers articles and accessories for clothing such as leather goods, articles for sewing and knitting, as well as expenses for cleaning, repairing or renting clothes.

And it was carried out in the following countries: Turkey, Saudi Arabia, Ireland, Netherlands, Lithuania, Estonia, Hungary, Greece, South Africa, Poland, Israel, Slovenia, Iceland, Denmark, Sweden, France, Chile, Luxembourg, Colombia, Czech Republic, Portugal, Italy, Mexico, Costa Rica, Russia, Austria, Norway, Canada, Latvia, United States, Spain, Japan, Finland, India, Germany, Brazil, Korea, Slovak Republic, United Kingdom, Belgium and Switzerland.

According to the Consumer Price Index (CPI) measured by Indec, The chapter on clothing and footwear rose by 5.1% in October and accumulates a rise of 62.2% in the last 12 months, which positions it as the one that increased the most of the 13 segments measured by the agency. In the same period, the general CPI increased 52.1%

It should be noted that clothing and footwear is one of the sectors that does not have government regulation, as is the case with food or medicine, both contained by price agreements.

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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