President Javier Milei complained that the promotions are not reflected in the Consumer Price Index (CPI) and that inflation would be in single digits.
For Milei, the promotions omit the drop in inflation: what the INDEC says and how they influence the CPI
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The minister of Economy, Luis Caputoand the secretary of Trade, Pablo Lavigne, will receive businessmen from the country’s main supermarket chains this Monday. This happens after President Javier Milei assured that promotions in stores indicate that prices are going down but that this is not reflected in the Consumer Price Index (CPI) and that inflation would be in single digits.
The meeting with supermarkets adds to the one held with mass consumption firms in the middle of last week, where Caputo explained the next steps of his economic plan and ruled out the possibility of a devaluation in the near future. From the Government they have been raising disagreement with the strong increases that are exhibited in the gondolas.
Caputo stated in his account of X that there was “a coincidence that Prices are going to continue falling and it is important to make the real price per unit of the products transparent. so that they can be captured appropriately by INDEC”.
The minister also posted a video of shelves in which the prices appear with different promotions and assured: “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 mostly do not validate and they have already started to lower them, but through promotionssuch as 60% discount on the second unit or up to 2×1″.
In this regard, the head of the Palacio de Hacienda specified that “these discounts, although they are not captured by the INDEC due to its logical unit measurement modality, They are a clear sign of inflationary deceleration“.
In the same sense, President Javier Milei spoke out, pointing out in a television interview: “Companies raised prices very sharply and now they correct with 3×2 or 2×1. “Then the (list) price is marked when it is actually going down.” So he considered that “if you correct for this effect, inflation is in single digits.”
Supermarkets, for their part, maintain that Promotions and discounts are not the responsibility of the chains but of the industry.
How INDEC measures promotions
The Economist Gabriel Caamano of Ledesma Consultant He denied that INDEC does not measure promotions. “The promotions in question, which are a price discrimination mechanism, have been around for more than a decade. It is not something new. And it is not true that the INDEC does not measure them. It depends on how the promotion is set up,” he explained from his networks.
The expert clarified that INDEC measures the price paid for items and checks that they are available, in various places every day. And to demonstrate that this is the mechanism, he posted the organization’s document that explains how the price of the products is taken.
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Source: Ambito
