In recent months, and particularly in the August Consumer Price Index (CPI), clothing and footwear prices have surprised by their intensity, registering an increase of 9.9% in one month and 109% in the last year.
Those alarms mobilized officials from the Secretariat of Commerce to close a deal with some 60 brands in the market to try and hold prices through December. However, September, the month in which the change of season has a strong impact, would not have reflected that gesture of good intentions. According to consultants who closely monitor retail prices, the object textiles once again drove last month’s inflation.
According to measurements from the consultancy Eco Go, which estimated a 6.7% monthly increase for September, clothing ranks among the items with the highest incidence on the rise, with an increase of 7.3% in that time. As she explained, “containing through regulated prices is far from sufficient and continuing to delay the removal of subsidies, already reduced in a context of rising inflation, does not contribute to giving signals of a macro nature,” he said.
Meanwhile, from the consulting firm Orlando Ferreres, in its inflationary projection of 6.5% for September, they highlighted that “Merci Varie” and “Health” lead the increases of the month, registering increases of 10.9% and 9 respectively, 3% monthly, and follow up “Clothing”, which shows an 8.1% increase.
Two weeks ago the “voluntary” agreement signed by the government, the Argentine Chamber of Clothing (CIAI) and the companies in the textile sector was signed to maintain prices until 1 December and set the reference values according to the prices that the items had on September 5th.
According to sources of the secretary in charge of Matias Tombolini, “there are still no data available” on compliance with the agreement. the inspectors are going to check companies that have promised not to raise prices.
From Eco Go, they analyzed that this type of measure, they are just “patches” to keep prices down a bit but they do not lead to a change in expectations.“Beyond these attempts, the situation is really complex and with core inflation at 7.4% and food at 7.2%, the problem is structural, the consultant pointed out in his latest report on general inflation. .
According to economist and consultant Jorge Neyro, “the increase in clothing prices in September is due to the change of season, which incorporates” new “costs in the sector.” In his view, “it’s normal every year, maybe what happens this year is that the raises are quite high nominally“, he stressed. By which, the variations due to the change of season are mounted on that trajectory of sharp rise in the price of clothes,” he said.
The price agreement signed with more than 60 brands present throughout the national territory in shopping centers, supermarkets and company stores, provides that starting from 1 December and for a period of 180 days, prices are adjusted in relation to the change in the official exchange rate, as seen.
The brands that have joined the initiative are 47 Street, Addnice, Adidas, Akiabara, Amphora, Awada, Ay not dead, Azzaro, Baby Cottons, Bensimon, Billabong, Bimba, Bolivia, Bowen, Carmela Achaval, Caro Cuore, Cheeky, Clara Ibarguren, As you like, Cristoforo Colombo, Cuesta Blanca, DC Shoes, Desiderata, Black Label, Furzai and Grimoldi.
The companies Grisino, Boer, Jazmín Chebar, Juanita Jo, Kosiuko, Herencia, La Martina, Lacoste, Las Pepas, Lázaro, Levis, Little Akiabara, Lola, Maria Cher, Markova, Midway, Mimo, Mishka, Naum also participate in the agreement , Nike, Old Bridge, Original Penguin, Paula Cahen D`Anvers, Perramus.
These brands were also joined by Portsaid, Prune, Quiksilver, Rapsodia, Roxy, González Tailoring, Stance, System, Tascani, Taverniti, Uma, Vitamina, XL Extra Large, Yagmour and Zara and the United Supermarkets Association (ASU) which sells own brand clothing.
Source: Clarin
