In the Palacio de Hacienda they are clear that Inflation responds fundamentally to the deficit that the national State is unable to finance and to the shortage of reserves that generates tension in the foreign exchange market. Consequently, those causes are attacked. However, in the current context they also identify a high inertial component. This determines that any nominal accident becomes a new floor for the price index.
How did you anticipate Ambit, to attack this component, the Government proposes a broad agreement that serves to anchor the prices of the basic basket and at the same time the expectations. That plan is moving forward. Official sources anticipated that the adherence to the program of some 1,200 products had already been agreed upon. About 500, would be those who already participate in Care Prices and for the launch in December they aim to reach around 1,500.
In the negotiations that the Secretary of Commerce, Matias Tombolini, He maintains with the big firms that there is already talk of a price path for products that do not enter the official plan. They thus seek to avoid a cross-profit effect that ends up diluting the benefits of the initiative. The ceiling that is sought to be installed for the increases is 4%, in line with the 60% inflation goal that Massa set in the 2023 budget.
One-on-one meetings with companies have accelerated in recent weeks. They are tough meetings where Massa and Tombolini point out every detail: how prices moved, what benefit each firm receives and the amount of official dollars to which they had access. Precisely this last point is key in the “give and take”. The Government will guarantee a “green channel” to import those who are part of the plan. Companies, in times of scarcity, are interested.
To consolidate the agreement they seek to add actors. In recent days, the Secretary of Commerce Matías Tombolini spoke in different meetings with almost all the large supermarkets. Apart from providing exhibition, the large chains are analyzing adding their own brand products to “Fair Prices”.
From one of the supermarkets with the greatest presence, they highlighted to this medium that “the own brand is a product that, in addition to providing variety, serves as a reference in the gondola”. Although they pointed out that “many times the production of these items depends on large manufacturers.”
The wheat problem
In the Ministry of Commerce they closely follow the evolution of inclement weather and very specifically the impact that the drought can cause in wheat derivatives. Although the Argentine Wheat Stabilizer Fund (FETA) is still in force, the bag of flour used by the bakeries is already around $2,000 with a subsidy and scales to between $3,000 and $3,500 without state support.
From the sector they anticipated that the new escalation of costs will take a kilo of bread from $360 to $430. In the Government they believe that the problem may even worsen in the coming weeks and they are analyzing different alternatives to mitigate the impact of the lower supply of wheat. In the coming days there will be new calls to the milling sector to find solutions.