As the government intensifies pressure to curb inflation, supermarkets warn that the shortage of Care Price products is worsening, which today it is on average around 50%. This was the main idea of the big chains when the Secretary of Commerce, Matías Tombolini, asked not to accept increases of more than 4% per month from their regular suppliers. “And if they don’t deliver the goods, they notify me via WhatsApp that I will fix it“, he threatened.
Backed by Economy Minister Sergio Massa, Tombolini has tightened price controls as requested weeks ago by Cristina Kirchner. First, ordered to investigate the profit margins and costs of over 15 mass consumer companies lead to unjustified increases and abusive practices. At the same time, he convened the ASU, the largest room in the supermarket, so as to reject excessive uploads.
As he advances in “a stabilization plan between December and March” to freeze prices “in the hottest months of the year”, Tombolini held a meeting with the chains this Monday to try to tighten another block on inflation. In front of the senior executives of Carrefour, Cencosud (Jumbo, Disco and Vea), Coto, Día and Changomás, the official recognized in a basic 40-minute economy class that prices control they do not solve inflation because “it is something multi-causal”term popularized at the time by former Economy Minister Martín Guzmán.
However, Tombolini announced it in Argentina there are some concentrated industries and asked for the cooperation of supermarkets a avoid “abusive” increases.according to official doctrine. “The government spends a lot of money on subsidies, like in the case of flour, e I don’t see it reflected in bakery prices“, he declared with some anger at the meeting held in the Federal Hall of the Ministry of Commerce.
The companies did not remain silent and took turns to talk. “Each month we receive lists in 7% increments on average, with peaks of 15%. If we refuse them, we run the risk that they will not deliver the products and then they fine us“complained one senior executive. Another remarked (excuse the word) the high level of non-compliance (shortage) in service pricesthat Tombolini himself has just relaunched on 7 October with a list of 452 items from leading brands.
“There are more and more deficiencies, especially in oils. In chains there are none and in self-service shops it costs double, but yes “, companies complain, fearing that the situation will get complicated when the freeze between 1,200 and 1,500 products announced by Massa comes into effect. government for over a year on the missing and that the problem has accelerated with the escalation of inflation in recent months.
Furthermore, they point out that producers and suppliers had already rationed the delivery of goods linked to service prices in parallel with the tightening of controls. One executive estimated that his chain has 40% availability in regulated products and 70% in the rest of the categories. This is not new. The predecessors in charge of Tombolini, including Roberto Feletti, had warned of the limitation of the program, which focuses exclusively on the so-called “modern channel”, which represents just one third of mass consumption.
The Government’s concern is logical if we take into account that in a few days the inflation data for October will be known, which private consultants estimate at around 6.5% on average, and a little more overheated in food and drinks. On Wednesday, Daniel Funes de Rioja, head of Copal (the entity representing food companies), questioned the official measures. “It’s not the way to freeze prices or threaten companiesbut working with companies and all sectors to tame inflation, “he said, adding that” every time an index release approaches, there is more nervousness. “
Source: Clarin
