Although he explained that, for example, core inflation, which does not measure the seasonality of products, showed a drop of one point when it fell from 4.4% to 3.3% in January, it cannot yet be said that such a fall reaches figures close to 3% in the Consumer Price Index. “I dare not think of 3%,” she said.
In addition, he considered that “To think of 2% we need more regulation”and took the opportunity to criticize the macrismo for having “dismantled” the price control tools that were active until December 2015.
Beyond what may happen in February, the official was forceful in pointing out that the value reported by Indec in January “was an important shock” that was verified above all “in fresh products, vegetables and legumes, which almost explain 60 % of variation in food”. In that sense, he said that the increases “are not justified” despite the fact that one could speak of seasonality, greater consumption in summer and the effects of drought on crops.
“I think there is a problem of regulation of these products,” he said.regarding fruits and vegetables. “Just as we managed to establish a reasonable offer in the packaged products, processed from the gondola, with the wide basket of 1,300 products of Careful Prices, compatible with the average income, here in the Central Market the price of tomato was $150 and in the greengrocers were selling for $600 or $700,” he added, although he added that it is not the goal “to hit the greengrocer.” “I don’t want to stigmatize the greengrocer, who jumps at the chance,” he said.
As for the possible measures to be taken to avoid these rises in products such as fruits and vegetables, the economist pointed out that one of the possibilities would be “to have a term purchase system” for Central Market products. Regarding this, he announced that they are working to analyze if this is a possibility: “I asked them to tell me how much it costs to buy part of the production ahead of time and set a price and when it is harvested, offer it.”
On the other hand, he said that they are also evaluating another mechanism, which would involve the mayors, mainly from Greater Buenos Aires. “It is the mechanism that is removed from the Central Market and forms of marketing are created that counterbalance the price of the greengrocers,” he pointed out.
Lastly, he analyzed the effect of the Care Prices program. “We are having 70% compliance with the program,” she said, as a result of a drop in supply that would have been generated by lack of personnel as a result of the rise in Covid-19 infections in January. “We calculate that by March this will be normalized,” she said.
Regarding the need for the program to reach local businesses, he announced that they are working on this possibility with a measure that allows avoiding the price differential that is generated with respect to the large chain. “In gondola we are trying to make a basket of 75 products so that the store can compete,” he said.
The application of this new program, which is still under development and will reach a smaller portion of products due to the size of the warehouses, “will take 15 days,” Feletti confirmed.
Source: Ambito
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