The cost of goods and services keeps increasing, causing people in the capital and its surrounding areas to have less money for their weekly expenses.
On Monday, the cost of a bus ticket experienced a significant increase of 45 percent as President Javier Milei’s administration continues to reduce subsidies for public transportation. The fare for short trips rose from 52.96 pesos to 76.92 pesos.
Next month, there will be even more severe reductions in subsidies, leading to an increase in the average bus ticket price to 270 pesos in the Buenos Aires Metropolitan Area.
Railway ticket prices are also experiencing a surge in cost. Beginning next week, individuals using a SUBE card will be required to pay a minimum fare ranging from 37 to 48 pesos. However, it is anticipated that these prices will further escalate to 160 pesos once February arrives.
The upcoming increases will greatly impact workers and the middle class, who are already struggling to handle rising costs in various areas such as electricity, gas, water, sewage, education, and other essential services.
Despite evidence indicating a nearly 20 percent decrease in consumption over the past month, the cost of medications continues to rise.
According to a report from the Center of Argentine Pharmaceutical Professionals (CEPROFAR), the prices of the most commonly used medications increased by approximately 320% in the past year. The report pointed out that this increase was happening at a faster rate compared to the 211% inflation recorded during the same period.
Retirees and pensioners are the demographic that feels the impact of increasing medicine expenses the most. Even without the assistance of the PAMI health program, they struggle to afford the out-of-pocket costs for their prescriptions. Numerous long-term patients encountered challenges in continuing their necessary medications this month.
Rubén Sajem, who is in charge of CEPROFAR, stated that Argentina is the only country in the world where there is currently no regulation on the prices of medications, leading to an uncontrolled increase in their costs.
Sajem mentioned that people only need to purchase food and medications, but in December, the data shows that 20% of individuals would not be able to obtain their needed treatments.
Additionally, he mentioned a decrease of 19 percent in drug sales within the previous month, and it is anticipated that a further decline may occur throughout the month of January.
The government of Milei is attempting to increase transportation costs to match the rates in the interior of the country, which is resulting in higher prices.
The Ministry of Infrastructure is initiating the creation of a new method to ensure that transportation prices align with operational expenses. However, it is important to note that these adjustments will not occur on a monthly basis.
At present, the income generated from ticket sales for buses in urban areas only covers six percent of the overall expenses of operating bus systems. When it comes to trains, the revenue obtained from tickets accounts for less than 0.7 percent of the total cost of running the service.
Public transit users are facing a challenging period until authorities implement a new subsidy system.
– TIMES
