While the change in inflation in September reached 83% year over year, many of the products making up the registered base basket exceed 100% over the same period. These are not sumptuous items but staple foods like flour which grew by 118%, in that period oil (131%), butter (113.9%) or sugar which rose by 194%according to official data.
For this reason, the Secretary of Commerce, Matías Tombolini, has multiplied the cycle of meetings with representatives of large consumer companies, with the idea of finish closing a deal this week to freeze the prices of around 1,200 items for 120 days. In addition, the secretariat aims to implement a cap of Monthly increases of 4%. for the rest of the products.
According to official sources, “the idea is to keep prices fixed for about 120 more days a price path that gives some predictability”, They explain. Also launch the program “as soon as possible”, in an attempt to show “actions” of containment of inflation that aim to close the year in three figures.
Commerce officials are working against the clock to have the list finished and can be rolled out into the gondolas before the beginning of December when “the sales are more vibrant due to New Year’s Eve,” commented a source at one of the companies. involved in the negotiation.
So far, the companies have delivered product listings so officials can evaluate their incorporation into the new program called “Fair prices “. In some cases, companies have had to reformulate their proposals according to the needs of officials. But beyond that, “there is a good predisposition, commented the spokesman of a multinational with massive consumption.
The scheme plans to agree with the large suppliers of food, drinks, toiletries and cleaning, among them Mills, Mastellone, Arcor, General Oil Deheza, Quilmes and Coca-Cola.
In exchange for the resignation of profit margins to mitigate the impact on consumers’ pockets, the official promise for industries is that the government it will release the necessary dollars so they can import “input.” essential and therefore to guarantee production “, underline from the private sector.
On the part of the companies, the request for the officials is to allow them to increase prices, 4% initially, and the same, at the end of the period foreseen by the program.
Another question resolved by officials and businessmen right now in the Tombolini office is whether the products included in the Careful Prices program will coexist with those of Fair Prices or will become part of the new plan. In principle, an industry source has estimated in this regard that the 452 products that are currently part of the Cared prices “will be included in the new Fair Price list”.
It also has to do with how fast the chord is cooking the official need to show “management” against rising inflation, the variable of greatest concern, at the moment, for the evolution of the economy. In this sense, next Tuesday will be known the inflation data for October that the INDEC will report. The figure is estimated to be around 6.5% according to private consultants.
Inside the indicator, food and drinks include one of the elements that most influences the escalation of prices. According to the latest known indicator on prices in the city of Buenos Aires -corresponding to October- food recorded an average monthly increase of 7%, accumulating between January and October an increase of 84.8% and in 12 months an increase of 95.4%.
“The main impulses came from milk, dairy products and eggs (7.8%), bread and cereals (6.5%), meat and derivatives (4.9%) and vegetables, tubers and legumes (9 , 9%) ”, underlines the report of the Statistical Directorate of Buenos Aires.
Source: Clarin
