Faced with this situation, he indicated that “the Government took a series of measures to put a stop to the generalized increases in the value chain”, and pointed out that “the effect of these policies was seen immediately.” “Not only was the upward dynamics cut from one month to the next, but prices fell back accumulating a fall of 3% in the last four months “, remarked the center led by Hernán Letcher.
It also specified that “only in October, economic cuts fell 1%, while the total weighted average of cuts did so at 0.4%. “He also pointed out that” in year-on-year terms, the Government’s measures managed to slow down the variations of the main cuts, although they still continue above the general price level of the economy “, which in September was 52.5%, according to the latest Consumer Price Index (CPI) released by the National Institute of Statistics and Censuses (INDEC).
In this sense, CEPA specified that “at the head of the increases are cuts of high popular consumption such as roast, with 73.1% year-on-year; the void, with 75.6%; and the matambre, with 69, 7% “. The report noted that “in October it was recorded year-on-year that counter meat increased 71%, while the increase was 76.3% on the farm. “
Thus he highlighted that “the year-on-year increases are explained one hundred percent by the increases promoted up to the moment of the measure”, and stressed that “these figures far exceed the inflation of 52.5%, making it difficult to sustain the argument of loss of profitability in the sector “.
The substitutes
The impact of the measure can also be seen in the price of substitute products. In the same month of October, chicken showed an increase of 1.2% in its price. If the amount of kilos of fresh chicken that can be bought with a kilo of the most consumed beef cut (the roast) is analyzed, it is observed that prior to the measurements, the roast had revalued strongly in relation to the chicken. The gap between the two products reached almost 4 kilograms in June. This ratio was reduced to 3.35 kilos of chicken per kilo of roast as of October 2021, as a result of the reduction in the price of beef and the slight increase in chicken.
Source From: Ambito
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