On the reasons for the slowdown in consumption, the report refers to inflation: “We cannot help but associate this change in trends with the effect of the acceleration in prices, reaching in May to exceed 60 points versus the same month of 2021, and we already know the impact that this has on people’s purchasing power “.
Although May had a positive variation in consumption of +0.4% throughout the country, the data varies according to the sales channel and location. In supermarkets, sales fell 0.2% across the country. The worst data was in the AMBA: the fall was 0.3% in the case of supermarkets, and -9.5% for local businesses.
As for the items of mass consumption, the largest drop at the country level occurred in food: it was -4.3% in May, although with the data for the first four months, the accumulated figure for 2022 remains positive at 2.5%. for food. The biggest drop in food sales occurred in local businesses (-5.8%), where Care Prices did not arrive, while in supermarkets it was -2.3%. The sale of food was hit above all in the AMBA, in all sales channels, where the fall was 8.6%when in the interior of the country it was -1.3%.
In any case, mass consumption in the accumulated of 2022 maintains positive numbers: +5%, due to the data for the first four months. Looking ahead to the remainder of the year, the outlook is grim: “Probably, in the second semester we will begin to see negative months”assures the Scentia document.
new arm wrestling
After the renewal of Care Prices, the new Secretary of Internal Trade, Guillermo Hang, will have to face a new dispute to avoid a rise in prices. It is about the future of a trust that works privately, a funding provided by exporting companies and received by the food that supplies the domestic market, to subsidize the noodles and flour that appear in Care Prices. Are more than 160 products of the list.
As this newspaper learned, the private trust is practically out of funds. The solutions differ between Hang and the exporters, in a series of meetings that took place these days. Initially, the request of the economist, close to Guzmán, was to request more funds, although the companies consider that “it is not feasible.” They assure that this year, together with the oil trust, they will have dumped US$800 million of their income. For the oil trust, funds remain until September.
What is expected is that the private trust that subsidizes the prices of flour and noodles become subsidized by the state. Thus, it could be unified with the Wheat Stabilizer Fund, that it is the mechanism through which industrial flour is financed to support the price of bread. This fund arose from the increase in withholdings on soy derivatives. “There are few funds left to make ends meet. If they don’t all go to the state trust, there will be problems with noodles and flour for family consumption,” commented a business source. If no action is taken, the food companies warn that there will be a 40% jump in gondola prices.
Source: Ambito
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