The Secretary of Domestic Trade, in charge of Robert Feletti, tried to be able to reach neighborhood butchers with Cuts Care, although still without success. Where if he was able to reach an agreement is for Care Prices to reach nearby businesses, where more than half of the country’s consumption is carried out and there was no program. A) Yes, From next week Care Prices will be added in local shops, with a basket of 60 mass consumption items and five fruits and vegetables.
The Government thus tries to moderate food inflation that shot up in the first quarter. The basic basket accumulated to March a rise of 20.7%, according to Isepci, which surveys prices in the suburbs. In addition, as part of one of the points agreed with the UIA and the CGT, the economic team signed to advance with a fifth agreement. According to the signed minutes, they will seek to establish a “basket of basic necessities, of between 50 and 60 products”, although so far the plan is not in the orbit of Domestic Trade.
Little impact on inflation
In any case, the Government does not plan to lower inflation with price agreements, but to stabilize it. “Price controls are a tool to improve expectations, but it is not the solution, we never said that inflation is fixed with price controls”he claimed Matias Kulfas, Minister of Productive Development, in radio statements. Along the same lines, Feletti affirmed that they are “limited” tools, and proposed moving forward with other decoupling initiatives, such as retentions, a project that ultimately did not prosper.
Along the same lines, a businessman from the food chamber (Copal) anticipated that the price agreements will have “little” impact on inflation. “In the prices of the gondola if it is going to be noticed, but later the food inflation includes meat and seasonal where the greatest increases are registered, and they put us all in the same bag,” he added.
In addition, Ámbito consulted four economists, who agreed on the projections about the impact of price controls on inflation. “I don’t see baskets dissipating price dynamics. They are necessary measures, insufficient without a more holistic plan of how to attack the problem,” he assured. Guido Lawrencedirector of LCG.
While, Mary Castiglioni, director of C&T, said: “It seems difficult to have an impact, it may be something very marginal, the inflationary dynamics of the third week of March was very hard, and continues to be strong, and in April increases are added in other items such as education , health and tariffs, which are going to have strong impacts”.
Hernan Letcherdirector of the Cepa center, estimated: “You are going to have a more moderate inflation, April is going to be lower than March and the expectation is that the curve begins to descend, from high levels, because the inertia is not reduced only with this”.
Nicholas Pertierra, chief economist of CESO, detected a relevant fact in the weekly measurements. “The effect of the price retraction was not noticed. In October, when a similar measure was taken, there was a negative variation in supermarket prices of -0.1%. This time, we continue to register a variation of +0.7%. I do not see a significant impact, it seems to have returned to the speed of pre-war inflation (3-4% per month) and to have validated part of the March increases”, he stated.
Source: Ambito
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