The Limited Times

Now you can see non-English news...

Prices Released: The Government Runs Away And A Few Days After Milei Takes Office, Prices Run Wild

2023-12-06T17:17:06.947Z

Highlights: Prices released: The Government Runs Away And A Few Days After Milei Takes Office, Prices Run Wild. They occur basically in medicines and food. They are in addition to others already contemplated such as prepaid medicine, telephony and schools. Expected inflation for this month would have a floor of 14%.. A few days before Javier Milei takes office in the Casa Rosada, the pockets of the population are absorbing price increases of all kinds. The "surprises" when it comes to paying are coming from the side of mass consumption and also from medicines.


They occur basically in medicines and food. They are in addition to others already contemplated such as prepaid medicine, telephony and schools. Expected inflation for this month would have a floor of 14%.


A few days before Javier Milei takes office in the Casa Rosada, the pockets of the population are absorbing price increases of all kinds. In some cases, these are increases already scheduled for this time of year with the addition that December is a month of high inflation due to the higher consumption of the holidays. But, in other cases, these are increases in the face of the uncertainty of an increase in the official dollar.

Among the increases planned for this month are those of tolls, prepaid fees, school fees, telecommunications tariffs and rents.

The "surprises" when it comes to paying are coming from the side of mass consumption and also from medicines. The pharmaceutical industry had agreed with the Secretary of Commerce to a three-month price freeze that expired on October 31. Then, in November, the laboratories applied two increases: 15% and 12%. And in December, further hikes aim to offset inflation.

Private medicine, for those who do not have the quota frozen (members who declared having a family income of less than $2,000,000 per month) will have an increase of 11.51% in December.And as of January 2024, the share of this service will increase by 6.26%, according to the Superintendence of Health Services (SSSalud).

Video

The supers released combos with sweet bread, jams and drinks.

On the other hand, the fees of the subsidized schools of the City and Province of Buenos Aires are expected to increase by up to 22% in Buenos Aires and 11% in Buenos Aires. The amounts of the new fees depend on the percentage of subsidy the schools have and the services they provide.

Another increase to add to the budget is the salary of domestic workers, as they will have a scheduled increase of 10%. This is the last tranche of the total 34% increase agreed two months ago, which was divided into three installments. The increase is calculated on September salaries.

Among the items that generate the greatest concern, especially in the context of the poverty figure that has just been released and climbs to 44.5%, is food. In particular because the price escalation seen in the week after the elections was not reversed, quite the opposite. Since then, there have been products with increases of more than 50%.

Video

Why the President takes office on December 10.

Precisely to partially contain this impact, the Ministry of Commerce met with companies and supermarket chains and authorized an increase (for Fair Prices products) of between 5 and 12% to be applied in November plus 8% during December. However, the rest of the mass consumption products went through a different reality. All you have to do is visit a supermarket or a neighborhood store.

"Every time we go to the wholesaler, we see the prices change," says Fernando Savore, head of FABA, the federation that brings together grocers in Buenos Aires. And he says that, in the two weeks leading up to the runoff, there were many missing. "Then, on the Tuesday after the vote, the rebranding and the huge price disparity started," he said. "Everyone set the prices they wanted," he said, referring to the stores where the grocers are supplied.

"That's why, in the first few days, it was impossible to replenish the merchandise: noodles increased by 50%, cookies by 30%. Yesterday, the executive received a list from a manufacturer of biscuits and cereals that applied a 15% increase as of today and already warned that another 12% was coming next week.

In a supermarket chain, they commented that a beer manufacturer applied a 45% increase. In neighborhood businesses, prices have already been applied because the official program of careful prices does not reach that channel.

This inflationary inertia in the prices of the basket has intensified and adds to the drag it already brings. According to INDEC, the consumer price index accumulated 142.7% year-on-year until October, while food and beverages climbed 153.8%.

Another increase expected for this month is that of cable, telephone and internet companies. In an agreement with the government, the companies have authorized a 4.5% increase in December. Tolls on the north and west accesses will also increase by 50% this month. New car rates start at $250 (and $300 during rush hour).

Rents, finally, continue to be a nightmare for renters. Those who have contracts that must be updated in December, and must calculate the increase through the Central Bank's Rental Contracts Index (ICL), will be applied an increase of 130%. Although the new rental law is already in force, which establishes the six-monthly update through the Casa Propia Index, the first increases in contracts reached by this regulation will only take place from April 2024.

November's inflation projections range from 12% to 14% monthly. By December, the floor would be 14%.

Source: clarin

All business articles on 2023-12-06

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.