Prime Minister Luis Caputo and then President Javier Milei argued that the INDEC it does not take into account promotions from supermarkets and some commercial activities (e.g. 2 for the price of 1 or discounts on certain days of the week and/or with certain debit or credit cards). What if they were taken into consideration? Inflation would already be in single digits.
In reality these promotions have been in force for a long time and have not been increased in recent months. therefore they do not alter the variation of prices, even for those who take advantage of these promotions.
In reality, these promotions have decreased in high proportion because, since January 1st The government has eliminated VAT refunds for pensioners with minimum wages up to the ceiling of $18,800, which has aggravated the fall in purchasing power of these several million pensioners and pensioners.
For example, if the price of milk on the shelf was $1,000 in January and about 20% off at $800 a Box, and in February the same product increased by 10% and reached $1,100 a Gondola and the 20% promotion was maintained, i.e. it reached 880 dollars, only for those who took advantage of that promotion. So the increase was also 10% ($800 to $880). That is, the change in milk prices was 10% both with and without promotion.
THE INDEC take into account the prices of the gondolas because those promotions They are not universal or everyday and are limited to small groups of consumers who, despite regularly taking advantage of these promotions, are not influenced by the variation or inflation of these prices.
Furthermore, in relation to the presumed drop or reduction in nominal prices due to the drop in consumption, INDEC surveys do not report any nominal drop in prices, except for very few seasonal products, while others, again for seasonal reasons, have a very strong jump.
So that the promotions are reflected in a decrease in the price index of the currently promoted products they should be moved to shelves for all consumers.
Source: Clarin
