Oil and fuels, products that increased prices the most in 2021

The Consumer’s price index (CPI) is an indicator that measures the evolution of prices in goods and services during a certain period of time. Inflation, so far this year, has risen at levels not seen in a long time, affecting the pockets of the population.

According to the latest report from National Institute of Statistics and Informatics (INEI), the CPI in metropolitan Lima reported an increase of 5.60% between January and November 2021.

In addition, the entity indicates that this increase was driven (to a greater extent) by three sectors. In the first place, by the consumption groups “Rent, housing, fuel and electricity” with an increase of 37.01%. In second place, the group of “Food and beverages” follows with 7.19% and in third place, “Transport and communications” with 5.95%.

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They are followed by “Clothing and footwear” with 0.36%, “Recreation and cultural services” with 2.71%, “Furniture and fixtures” with 2.37%, “Care and health maintenance” with 2.12% and others with 1.75%.

Impact on Peruvians

Carmen Ortiz, a 45-year-old from Chorrilla, is a housewife with two children who are preparing to go to university. She says that before the pandemic she used to buy her groceries in shopping centers; But, since COVID-19 arrived, all prices have risen so much that he takes care of every penny in his pocket and only buys his products in the market, since his family’s diet depends on this.

“The oil has risen too much, twice. I bought S / 5 or S / 7 at the most; Now the cheapest is S / 8 and I pay up to S / 15. Meat for steak is S / 28 per kilo, before S / 15. Yes, it is very expensive. That’s why I prefer to buy chicken or fish, “he says.

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This situation is corroborated by the seller Pool Grid (35), who says that oil, flour, beans and milk are the products that have increased their prices the most since the pandemic began.

“People are looking to buy the cheapest. In the case of oil, they look for brands that cost less, ”he says.

According to the report of INEI, the “Fats and oils” sector had an increase of 46.72%, followed by “Meats and meat preparations” with 13.10%.

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Jorge Guillén, associate professor at ESAN, indicates that the price of corn (which is an oil input) has increased internationally. That is why the cost of oil is much more expensive now; as well as the price of chicken, eggs, noodles, among others.

In addition, he explained that the increase in prices (at a general level) is produced by factors internal and external to our country.

On the one hand, the increase in the price of the dollar pushes the rise of the inputs that are sold in this currency. On the other hand, there are external factors such as the high price of corn that drive the increase in food prices in Peru.

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Fuel rise

Another of the sectors that have increased their prices the most is the fuel sector. According to the INEI report, it has had an increase of 5.95%.

This increase is corroborated by Glauco Rivera, who is a 69-year-old taxi driver who travels the streets of Lima between 8 to 12 hours each day.

To fill your car’s tank, you use 97 gasohol. He says that it costs on average S / 19 per gallon, but that its price has increased a lot compared to 2019. “Before it was S / 12 or S / 13. It has risen too much,” he says.

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Gustavo Navarro, director of Gas Energy, says that fuels drive the economy, as they are needed for such important activities as transporting food or cooking. As he explained, its price depends on external factors, such as the paralysis of tourism worldwide, which caused the demand for fuels and their prices to fall sharply in 2020. With the reactivation of this sector in 2021, there is a notable increase in the price of fuels. But, in addition, there are internal factors such as the increase in the price of the dollar, which also influenced the rise in fuel prices.

Concentration affecting Peruvians

Kurt Burneo, research professor at Católica CenterHe insisted that the fall in the dollar does not have an automatic effect on prices, because in the case of imported goods and supplies, the stock of these, bought with a higher dollar, must be finished.

“And also given the concentration of markets, it is difficult to transfer to final prices. To wait seated ”, he stressed through his social networks.

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In that line, Jorge Guillen, associate professor at ESAN, assured that the change in cabinet and the ratification of Julio Velarde in the board of directors of the BCRP they would be generating a drop in the exchange rate. “The dollar is moving away from the barrier of 4 soles. However, it would be the oligopolies of the companies that would prevent the prices of the products from falling. They are reluctant to lower prices. They do not do it at the same speed as the dollar. Importers are reluctant to lower it ”, questioned the economist.

Reactions

Carmen Ortiz, housewife

“The oil has risen too much, twice. I bought from S / 5 to S / 7 at the most; now the cheapest is S / 8 and I pay up to S / 15. Meat for steak is S / 28 per kilo, before it cost S / 15 ″.

Jorge Guillén, associate professor at ESAN

“There are internal and external factors that make us move away from the BCRP’s goal, which was 1% to 3% for this year’s CPI. We are above this ”.

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Consumer Price Index (CPI) of metropolitan Lima from January to November 2021