President Javier Milei considered that the sales promotions carried out by supermarkets distort the real price scenario and prevent the real fall in inflation from being captured. “If the prices of goods could be computed correctly given the promotions, inflation would be in single digits”assured the president.
Milei explained in an interview with a news channel: “Companies raised prices very sharply and now they correct with 3×2 or 2×1. Then the (list) price is marked when in reality it is going down.”
The President considered that “If you correct for this effect, inflation is in single digits”.
In the same way, the Minister of Economy had expressed himself shortly before, Luis Caputo, who in his X account cited a post that showed a video of a company consumed by promotions.
“It happened to many companies that they priced (set prices) their products expecting a catastrophe scenario that did not materialize. Today they have very high list prices that people do not mostly validate, and they have already begun to lower them, but through promotions, from type ’60 pct discount on the second unit’ or up to 2×1,” said Caputo.
The Minister insisted that “These discounts, although they are not captured by INDEC due to its logical unit measurement modality, are a clear sign of inflationary deceleration.”
According to the methodology published by INDEC, “each surveyor searches at each point of sale for the item that meets the specifications and conditions established and is the best seller” to capture the price, but does not take into account the promotions that can be made on the product on the shelf or at the checkout, either by variety or quantity.
This was one of the topics that Caputo discussed with the representatives of companies producing mass consumption goods on Wednesday afternoon at the Palacio de Hacienda and which was a cause of dissent between the parties.
Milei acknowledged that March will be a difficult month in an inflationary way and admitted a strong impact from the rate adjustment and increases in prepaid medicine fees.
“Discounting rates, prepaid, and statistical drag, inflation would be in single digits,” the President said.
In any case, the disinflation process stood out from the peak of 25% that occurred in December after the exchange rate correction.
The Market Expectations Survey (REM) published by the Central Bank showed that, for analysts, February registered a price increase of 15.8% in February, but March will remain around 14.3%, without a significant drop. .
Source: Ambito
