Faced with the accelerated increase in prices recorded in shops in recent weeks, There are two expected reactions among consumers. The first is that the inflationary rush pushes people to stock up or buy the products they need before they become more expensive, as seen recently in supermarkets.
The second is more of a boycott attitude: that is, trying to consume as little as possible. waiting for prices to drop. Although December is not a favorable month for this to happen, given that the holidays tend to push a lot of consumption, The postcard is starting to show due to the arrogance of inflation and will be much more evident early next year, traders warn.
A good example of this was seen in recent days with meat prices. After the sudden 50% increase in the basic food basket in less than two weeks, consumption has slowed. Therefore, in the last week, the prices in butcher shops they began to show drops of between 20 and 25%.
According to representatives of the meat industry, this is the only reason for the decline the public did not validate the increases faced with the loss of purchasing power that inflation is causing. This is how the values of the categories of goods consumed in the domestic market have increased – which have reached 2,000 dollars in the Cañuelas market – In seven days they fell between 10% and 17%.
Something similar is happening with the consumption of seasonal products for the holidays. In cider, nougat and sweet bread, among other products, the supermarket chains are doing itfrom a few weeks ago, multiple promotions like the typical 2×1. What happens is that these are relatively perishable products that, if they are not sold now, cannot be stored for next Christmas. In some cases the chains even have agreements “destruction” of goods when they fail to sell it within a certain period of time, commented a supermarket source.
A survey by Nextbyn, a company specializing in mass consumer distribution software across the Latin American region, found “a notable drop in consumption of this type of product.”
Data from Argentina by chance show that category sales “champagne and sparkling wines (in units)recorded a decline of 21% in November, compared to last year, while the December 2023 projection showed a decrease of 38% compared to 2022.
Aldana Tancredi, commercial director of Enro Distribución, distributor of consumer products in the south of the GBA, explains: “In this last month, we have noticed a notable decline in the consumption of luxury and seasonal products. Although we have also seen an increase in the turnover and consumption of essential products such as flour, oil, rice, soaps and shampoos”, he says.
In the Construction Materials sector, the effect of inflation has affected sales. “From November to today they are very stable, due to the increase in prices which has been very important: in the month it stood at around 40% and for the next month we receive increases of 20% and 25%, which means The drop in sales will be strong. We are working very carefully,” says Pablo Gaytan from the Ciudadela corralón.
From the Japo Gastro Club, which brings together small gastronomic entrepreneurs specializing in Japanese food, they say: “We noticed a big difference compared to what happened on New Year’s Eve 2022, there are much fewer reservations for New Year’s Eve dinner,” He says. “Also, we notice an adjustment in people: in sushi orders, even if they continue to order, the number of pieces per person has decreased. People adjust the quantity to be able to ‘treat themselves’,” says Lorena Nonaka, president of the club.
A recent survey by the Center for Public Opinion at the University of Belgrano that probed, among other topics, people’s expectations regarding inflation, found that, “As for personal finances, the main fear (for 51% of those interviewed) he is unable to cover his monthly commitmentsfollowed by the increase in the cost of services.
SN
Source: Clarin
