2023-09-08 10:28:50
As official data appears confirming that August inflation exceeded double digitsthe government seeks to strengthen the program “Fair Prices” as a containment barrier for which it conditions companies to sign the proposed agreements and if not, they are removed from the installment plan. “Now 12”, among other measures.
The City of Buenos Aires published this Thursday August inflation stood at 10.8% with a jump of 12.5% in the food category. Thus The interannual measurement showed a variation of 127.3%.
In the last few hours it was also known that inflation in Córdoba last month was 12.1% with a jump in food of 16.6%.
It is worth clarifying that These variations that seem far from what the pocket suffers correspond to averages of a varied set of goods and services (where limited rate adjustments influence) and also has the form of measurement as a caveat.
The thing is, Although inflation was on the rise, During the first two weeks before the STEP, the rate of increases was much lower to the process that was unleashed following the election and the devaluation, as specified by the economic consultants.
August private data advances an increase in prices “end to end” between 10 and 12% and they warn that this jump leaves a floor of 4 points of increase for September, Therefore, there is little chance of a slowdown in the indicator.
The INDEC will give the official data next Wednesday, which according to the perspectives will be the highest since the exit of convertibility, and consequently will put the Minister of Economy and presidential candidate, Sergio Massa, in trouble.
For the international economic consulting firm Focus Economics, if the estimates come true, Argentina would end 2023 with the highest inflation in the world in 2023.
The government’s response to this situation was accelerate the closing of agreements with food producing companies, who were initially reluctant to accept them.
From the Commerce Secretariat dialogue was appealed, butIn cases where agreements were not reached, it was decided to remove those companies from the Ahora 12 program.
“We are in the midst of a renewal process and it is logical that we take that position. When the company signs, the banking institutions and card issuers are informed that that company can operate with now 12“If you do not adhere, you will not be discharged,” they explained from the department in charge of Matías Tombolini.
The pressure that the government is exerting led, for example, the Ledesma firm to cancel the latest increases.
Curiously, this communication was made officially by the Association of United Supermarkets (ASU), that in a press release he indicated that Ledesma sent a note to his associates stating that “under the terms of the program ‘Precios Justos’ will deliver the sugar in compliance with the price path stipulated therein, leaving the preceding price lists void.”
If a significant slowdown in inflation is not achieved, Massa will be in serious trouble a few days before the general elections since on October 12 (10 days before) the INDEC will release the data for September, which if maintained at this rate will also be in double digits.
Stagflation
The other information you will have to deal with Massa It will be with that of economic activity since the INDEC confirmed that Argentina is going through a period of “stagflation” (recession plus inflation).
The organization reported today that Industrial activity fell 3.9% year-on-year in July, marking the second consecutive period in the red. However, in the annual balance it continues in positive territory, barely 0.5%.
The data to observe from the sample INDEC is that in the midst of the inflationary process food production fell 6.1% and? In the first seven months the decrease was 1.3%.
In the case of construction, the deterioration of activity is even greater. In July it fell 5.8% and accumulated four months of decline. And if you compare January July 2023 versus January July 2022 the balance shows a contraction of 2.6%.
The anticipated data for August show that this situation continued into last month.
For example, The sales volume of construction supplies showed a year-on-year decrease of 7.5% in August, according to the Construya Index.
1694169446
#official #doubledigit #inflation #data #government #seeks #strengthen #Fair #Prices
