The index of inflation March, which reached 7.7%, pushed the Government to hasten impact measures to try to counteract the rate of price increases. Without giving details, Economy officials promised “rapid anti-inflationary measures”, while, in parallel, some consultants estimate the Consumer Price Index (CPI) for April at a figure close to 7%due to the price increases of the first two weeks.
The Central Bank, for its part, is debating a new rate hike, at the same time that the ministry commanded by Sergio Massa awaits a sign of yields in the bond tender next Wednesday. Commerce tries to reinforce controls on supermarkets and stores, which are not included in the negotiations for Fair Prices, which increased prices twice as much as agreed in the National Program.
The diagnosis of the officials of the Ministry of Economy for the jump in the inflation in March estimates “multiple reasons”, among them, the persistent impact of the drought, the repercussions of avian flu, which would have “made some food extraordinarily expensive”, and the responsibility of “proximity businesses”which are outside of Fair Prices, for “having increased food and beverages by almost 12%, more than double what was increased within the program.
In the accumulation of reasons that they explained from the Palacio de Hacienda to argue the increase in the inflation and the upward course that seems unstoppable “the acceleration of parallel dollars” does not appear, which ignites expectations in the markets. In the BCRA they discuss whether the level of interest rates, of 78% annual nominal and 113% in effective terms, has a real impact, since the inflationary expectation for 2023 reaches 110%.
The officials who report to Sergio Massa did not specify the scope of the new measures, although they announced that they will present them in the coming days. The Secretary of Commerce, Matías Tombolini, anticipated that the Government “will deepen the controls” on the shops proximity, which includes neighborhood stores and supermarkets“which represent more than 60% of household consumption”.
