After runoff who crowned Javier Milei as the next president, food inflation acceleratedreaching the highest record so far this year, even above the week after the PASO.
This is clear from a private survey, which seems to somehow summarize the last few days, marked by political and economic uncertainty in the transition to a new Government. It also occurred in a context in which some Supermarket chains reported remarking by their suppliers of up to 50%which urged the Ministry of Commerce to launch different negotiations.
In this framework, according to the survey carried out by the consultancy LCG, inflation in food and beverages was 4.3% during the third week of November. This was the largest variation in the survey carried out by the firm so far this year: Thus, it surpassed the third week of August (after the PASO, with devaluation of the official dollar included), when the increase was 4.1%.
“In the third week, food inflation accelerated 2.7 percentage points compared to the previous week. The increase averages 10% in the last four weeks and 11.8% end to end in the same period. So far this month accumulates 8.1% inflation“, summarized from the consulting firm, which detailed that the item “Dairy contributed 23% of the total variation, followed by Ready Meals.”
Meats rose 1.5% in the week and contributed 0.47% of the increase. However, since the “cutoff” of the survey was carried out last Wednesday the 22nd, It is likely that the full impact of the increase in beef cuts that took place at the end of last week has not been recorded and, therefore, may add pressure in the short term.
Last week some cuts of beef increased by around 15% in a major supermarket. And, towards the near future, the trend is also upward. This will be particularly observed in December, a month with growth in demand due to seasonal issues. But the increases, they point out, respond to various factors.
Food inflation: projections
Another consultancy that measures the evolution of food prices is Eco Go. The firm’s last survey had a cut-off date of Friday, November 17, prior to the runoff, and registered an increase of 1%.
In any case, they clarified: “We hope that the change in model will imply an acceleration of inflation in the coming weeks, as a result of the correction of relative prices that is planned to be carried out in the new management.”
In this framework, considering ““a projection of an average weekly variation of around 3% for the next two weeks of the month, inflation of food consumed at home in November would climb to 13.1% monthly”highlighted from Eco Go, which in turn predicted a general inflation of 12.2% for Novemberthus returning to double digits after the slowdown in October.
With the aim of containing a greater increase in food, the Government held meetings last week with supermarket chains and suppliers, so that the increases remain within the parameters of the Fair Prices program, which contemplates increases of up to 12% in November and 8% in December.
It happened after last Tuesday (the first business day after the ballot), many supplier companies sent price lists to supermarkets with increases of up to 50%. In this scenario, “considering the current situation in which strong price increases are being recorded,” The members of the Argentine Chamber of Supermarkets (CAS) and the Argentine Federation of Supermarkets and Supermarkets (FASA) issued a statement in which they highlight the need “to proceed with extreme caution.”
“We cannot lose sight of the fact that, ultimately, those harmed by excessive price increases are the consumers, the people who must face this situation with very low levels of income. Supermarkets – who are not price makers – depend totally and exclusively on the prices set by our suppliers. That is why we urge you to respect the guidelines set by the National Government, in those cases in which they are reached and to proceed with extreme caution, if they are not,” they highlighted.
Source: Ambito
