While official data show that poverty already reaches 39.2% of the population, a staple food in the food basket, bread is about to receive a new price increase. It happens that the authorized 3.22% increase in the price of flour will have a direct impact on bakeries and prices will rise up to 15% in the next few hours. Although there is a large price gap, depending on the area, it is estimated that the kilogram of French bread will exceed $500 in most stores.
This was announced by the bakeries grouped in the Agrupados Industrial Bakers Center (CIPAN) which brings together around 40 districts of the province of Buenos Aires. They stressed that the increase will be applied to both the price of bread and the rest of the baked goods they sell and said the price increases will be in the order of 10-15%. Until February, the price of a kilo of bread in the AMBA was around $480. With the 15% increase, that could be $552.
“The increase responds to the 3.22% increase in the price of flour, authorized by the Secretariat of Commerce, but above all to the constant increases that we have experienced in the rest of the materials and inputs”, explained Martín Pinto, president of the Merlo Bakers Center.
According to the sector benchmark, “although this percentage on flour does not lead us to a direct % of the price of bread, it happens that from week to week we are experiencing increases in raw materials: the sugar in the last week, the oil has increased and so have the additives permitted by the Food Code. That is why we are taking this measure together with the bakers of the province of Buenos Aires,” she said.
For his part, the president of CIPAN, José Hernández, stated that “there are no reasons to disproportionate increases in the price of bread. We are aware of the difficult economic situation that the population is going through and for this reason, in the province of Buenos Aires, we propose to between 10 and 15% maximum, on the current price”.
“There are places where it will reach 600 dollars, such as in the downtown areas. There are places that sell for 450 dollars and will reach just over 500 dollars. The increase will not be unified. Therefore, in the bakeries of the province of Buenos Aires they increase between 10 and 15% more than its base price”, explained the leader.
We suggest following inflation and not exceeding increases. You can’t sell something that people can’t access. Any merchant realizes this.”, according to Hernández.
Consulted the Bakery Center of the Federal Capital, this is confirmed by sources of this body the increase will also reach the bakeries of Buenos Aires.
According to INDEC, a kilogram of flute in the GBA cost an average of $459.15 in February, following a month-over-month increase. 5.4% compared to January. If an increase of the 15%, the average would be $528.
The trigger for the increases on this occasion was the Commerce Secretary’s mandated increase of 3.2% in subsidized flour, under the Argentine Grain Stabilization Fund (FETA).
It is with resolution 269/2023, published today in the Official Gazette, that the new values for flour are established. Thus, as of this Wednesday, the 25 kilo bags are sold at 1,764 dollars for 000 flour and at 2,117 dollars for the 0000 type; while for tapas flour and semolina it was set at $2,293.
In the case of the ton, they were set at $69,237 for 000 flour and $83,092 for 0000 flour; and for tapas and semolina $90,000. The new values represent an increase of 3.22% compared to the last increase set in mid-February. The increases take into account the reference variations of the FAS price (without logistic costs) of the grain for 40%, that of the wholesale inflation of 30% and that of wages for the remaining 30%.
Source: Clarin
