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Thursday, December 01, 2022

Govt slashing prices due to inflation spurt in October

Govt slashing prices due to inflation spurt in October

Tombolini is expected to launch a fair price before Index reveals its cost of living for the last month, which they estimate is worse than September.

government Accelerates agreement to freeze for 120 days between 1,200 and 1,500 basic items from major brands, In recent days, including this weekend, the Secretary of Commerce, Mattias Tombolini, has had contacts with mass-consumption companies. to make a fair priceA schedule which will be made official by the end of this week or early next according to official sources.

The timing of the announcement is not naive. Tombolini is expected to announce it before or after the index reveals October inflationWhich according to private consultants will be around 6.5%, which shows a rebound compared to the previous month’s 6.2%, The idea of ​​the government is to launch fair prices “as soon as possible” after the list of products and prices are finalized with the manufacturers.

The plan envisages being agreed upon with large suppliers of food, beverage, cosmetic and cleaning products, including Molinos, Mastelone, Arker, General Deheza Oil, Quilms and Coca-Cola. In these days, There was also progress with wholesale chains and large supermarkets.Whose gondolas will be -in theory- under consumer control, How? Through an app (under development) that will allow you to control prices online and report non-compliance with virtual buttons on the application.

On the instructions of the Minister of Economy, Sergio Massa, Tombolini coordinates the final details with the companies. In return for stabilizing prices for 4 months in the context of high inflation, Government promises to give needed dollars so they can import “Indispensable input to guarantee the production of food and beverages,” he tells of the private sector.

In general, they add, “Want to Support”, However, they clarify that some aspects of fair value remain to be defined, beyond the products and formats that will make up the new programme. For example, freezing of prices is still unclear.

Companies claim an initial adjustment of 4% before start-up and one at the end. Government’s desire Is it valid from November 1 to March 1“But it may happen earlier”, he clarifies.

There is one more issue to be resolved. Sources familiar with the talks agree that it is possible that The 452 products that make up Care Price today are part of Fair Prices, That is to say, the two programs should be merged or the first, which was created in 2014 under the management of former economy minister Axel Kisilof and former commerce secretary Augusto Costa, was created.

Concerned about the acceleration of inflation, the freeze was proposed by Christina Kirchner herself. Last month, the vice president warned about “strong growth in food” and the profit margins of food companies that had to be “more accurate and effective” interventions. Massa himself rejected it, He said that nothing is solved by the cold and he “It was like stepping on a hose, but there’s water”,

Hours later, Massa announced that they were working on “a stabilization plan between December and March” to stabilize prices “in the hottest months of the year”. Later, Tombolini specified that a settlement was being sought”.With 20 or 30 large pricing companies that represent 65% of mass consumptionTo “build predictability in the gondola”.

In addition, the Commerce Secretary required supermarkets to reject more than 4% per month increase in products that are not included in the careful pricing program and future fair price baskets. That is to say, all other articles which are not subject to the regulation of the state.

When the chain raised concerns about a potential shortfall if the chain did not accept prices from its suppliers, Tombolini promised to resolve it personally. “They send me a WhatsApp and I solve it,” she threatened.

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