Nevertheless, when the underlying index or basket of costs associated to the conduct of the economic system is analyzed, equivalent to the costs of processed meals and drinks, non-food items, equivalent to clothes and extra sturdy items, you may see the impact of excessive inflation.
You will need to perceive that the confinement implied imbalances within the provide and demand of merchandise in areas equivalent to meals merchandise and meals preparation providers, momentary lodging, leisure, amongst others, which led to households recomposing their spending .
This naturally led to a change in value dynamics. Probably the most consultant case is that of processed meals, drinks and tobacco, through which demand didn’t lower as a lot as manufacturing and, consequently, costs elevated considerably.
Sadly, the inflexibility within the costs of the underlying items basket will more than likely proceed throughout 2021, particularly given the political selections which were made which have affected the dynamics of costs. An instance of the above is the IEPS Reform that went comparatively unnoticed final year.
Though the federal government’s message is that they won’t enhance taxes in 2021, this isn’t solely true, since, though a fiscal reform has not been carried out in all its expression, articles have been added and amended within the legal guidelines of the VAT, IEPS and ISR.
Specifically, final year the reforms to the IEPS Legislation of article 2 got here into pressure, whose most related change is that, from January 2020, every year the quota charged to the IEPS for tobacco and tobacco merchandise can be adjusted. flavored drinks, based mostly on inflation from every earlier November.
The foregoing implies that, throughout January, the costs of the aforementioned merchandise will enhance a minimum of because of the adjustment within the IEPS quotas, which elevated by 3.33% yearly. The modifications to the IEPS Legislation implied a structural change within the seasonality of inflation every January from final year, that’s, now we could have extra inflation within the months of January.