May 18, 2022 3:40 pm

Federal Price Consensus: how is the new plan analyzed by the Government to combat inflation

The Secretary of Internal Commerce, Roberto Feletti, I call coordinate with the provinces a Federal Price Consensus, a kind of national strategy against inflation, as a next step to the relaunched Care Prices. The official advanced the intention through the Official Gazette.

Through resolution 43/2022, Feletti ordered to communicate to the provinces and the Autonomous City of Buenos Aires the list of 1321 products of Prices Care, announced in January for the AMBA in different categories, with quarterly revisions and increases that in no case will exceed 2% per month.

The detail of the communication is accompanied by a proposal with a more ambitious objective. As he specified, the price agreements announced in January “allow us to be the starting point for joint work of the local jurisdictions and the Ministry of Domestic Trade in order to achieve a posteriori Federal Price Consensus”.

In this sense, Feletti expressed that it is “the conclusion of agreements that reduce the existing asymmetries between the provinces and regions of the national territory, promoting consumer protection -as the final beneficiary of the program- and the existence of reasonable profit margins for the actors involved in the activities achieved”.

In this sense, he pointed out in the resolution that, based on joint work, it will be possible to determine the bases to expand the scope of the Program, and incorporate the “basic baskets representative of local consumption in the field of local businesses.

Specifically, in article 2 of the resolution, the Ministry of Commerce invites the competent agencies of the provinces and the city of Buenos Aires to carry out a technical exchange “to try to establish conditions and definitions of the basic baskets at the regional level, that allow a posteriori the implementation of a Federal Price Consensus”.

In the considerations of the measure, Feletti pointed out that the program “+ Prices Care” is “a valuable tool to guarantee the reference price of certain mass consumption products” and highlighted in this sense the agreements reached last month with different marketers, distributors, producers and manufacturers “with clear guidelines and controlled mechanisms of variations”.

Along these lines, he maintained that it is an “effective remedy for access to a basic basket”, which grants “predictability in terms of its increases”. For this reason, he pointed out that it is “advisable that the results obtained” to the extent, specially designed for the AMBA so far, “can be taken up and adapted by local jurisdictions to the particularities of its field of competence.

Despite the renewed programs, inflation will be around 4% in January, as Roberto Feletti recently acknowledged in journalistic statements. “January inflation is going to be similar to December, but in food it is higher because you have the seasonality of fruits and vegetables”, Indian.

Without giving further details, he announced that “regulatory instruments” are being worked on with the Central Market to combat inflation.

Already private analysts, in their projections, had warned that the variation in prices would remain at high levels, which could even be 4.5%. Several of them also indicated that the 9% increase in fuel prices announced by YPF -and already replicated by other oil companies- added to other increases (electricity rate for large consumers and prices “stepped on” during the elections) will put greater pressure to the inflation data for this month, characterized by low seasonality.

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