The trap of inflation figures

THE TRAP OF INFLATION FIGURES

SurEconomics staff, August 2026

When the minister of economy goes on television proudly announcing that annual inflation was "only 4%", people are often stunned. How can that figure be so low when meat has risen 25% and cooking oil 30%?

It is not collective madness, but the built-in biases of economics...

The official Consumer Price Indices (CPIs) measure a broad basket of up to 400 products, weighting them equally. That means the cost of a 55-inch television, an airline ticket and a kilo of beans will count the same in inflation.

For the 40% of the population with the lowest incomes in Latin America, who spend 65% of their wages on food alone, the real inflation hitting their pocketbooks is double or triple the official figure published by the government. A clear regressive effect...

While technology prices fall 5%, staple foods in the region have accumulated a 48% increase over the past three years.

This statistical bias creates a dangerous disconnect: governments and institutions celebrate that prices "are stabilizing", while the poorest population cuts back its daily protein intake... What a paradox!

Sources

·       ECLAC. Price Indices and Food Costs in Latin America, 2025.

·       FAO. The State of Food Security and Nutrition in the Region, 2025.

·       El Cronista. "Why supermarket inflation never matches the official figure", March 12, 2026.