inflation was 4% in December and 36% in 2020 / Argentina News


The economy minister set himself the goal of reducing it “by five percent per year, but consistently.” What else did he say

The Minister of Economy, Martín Guzmán, announced that the Indec “will publish the December inflation of 4%, and an interannual inflation of 36%, 17 points less than in 2019”.

He announced it in Paraná where he participated in a meeting with entrepreneurs, officials and investors from Entre Ríos together with the Minister of the Interior; Eduardo De Pedro; and Governor Gustavo Bordet.

There he assured that inflation “is attacked with a comprehensive macroeconomic strategy”, and therefore it set itself the goal of reducing it “by five percent per year, but consistently”.

Inflation is “attacked with a macroeconomic strategy comprehensive, with exchange, fiscal, monetary, tariff policies and the price and income policy ”

The head of the economic portfolio asked establish an “exchange and dialogue agenda”, to continue “a process of stabilization and reassurance of the economy, strengthening the productive economic structure and generating social and economic development.”

In that sense, he pointed out that comprehensive macroeconomic includes “exchange, fiscal, monetary, tariff policies and the policy of prices and income“.

To do this, “the State has a fundamental role” defining “priorities for economic recovery, but taking each measure carefully,” Guzmán said.

Increasing expenses

The basket of services and food for a typical family in the City of Buenos Aires rose 9.8% in December and reached a cost of $ 120,334.

The survey, prepared by the Center for Education Services and Consumer Advice (CESyAC), warned that the most putualized increases occurred in prepaid medicine, with 10%, fuels with 5.44% and meats with 4.9%. Medications complete with 4.58%, cleaning products with 3.44% and ABL with 1.60%.

While waiting for the release of the National Institute of Statistics and Censuses (Indec) for the same period, the private study emphasized that the rise in the cost of living in the City rose sharply despite the fact that electricity, gas and water rates fell. kept frozen, as did passenger transport and trains.

In the monthly comparison, the price of the basket registered in December a rise of 9.79% compared to November, while between January and the last month of 2020 the advance was 28.53%.

“Of the $ 120,334.44, 77% was allocated to basic services such as rent, taxes and transportation, while 23% was for mass consumption products, such as food and beverages, “CESyAC stressed.

For the analysis, the expenses of a family that rents, has a car, a prepaid medicine subscription and has children who attend a private school and are members of a club. In this way, the final daily calculation that a family needs to live in the City of Buenos Aires amounted to $ 4,011.14.

How is 2021 coming?

The agreement closed for the continuity of “Careful Prices”, with average increases of 5.6% until next April, the Government is now accelerating open negotiations with two key sectors. They are two items with very different operations, but which have a decisive impact on family budgets.

One has to do with meat price, which comes with a very complicated dynamic, leading the increases in the food sector. Especially in the summer time, when due to seasonality prices tend to have a notable upward pressure.

The other segment is linked to the telephony, internet and cable television, which the Government determined as a “public service” during the pandemic. This item, which has risen above inflation in recent years, is now among the prices regulated by the Casa Rosada.

What is negotiated

Telephone – Internet – Pay TV

After the 5% increase determined for this month, the Government made the decision not to apply no increment for February. Again, contrary to what the companies in the sector claim.

These companies had announced to their clients increases of 20% for the beginning of the year. However the ENACOM -the body that regulates this activity- canceled this possibility. And it enabled a 5% tariff recomposition for January.

Telephone – Internet – Pay TV: the Government made the decision not to apply any increase for February

Even more: it forced companies to refund the amounts charged in excess, for cases where you have applied increases greater than the 5% allowed.

A new setting would only be enabled for the month of March. Again, around 5%. The companies demand that a higher increase be allowed for “premium” plans, something that the Government could grant.

That is, for next month there will be no adjustment.

The Pink House works with the idea that the cost of telephony and internet has become a sensitive point, beyond the pandemic. And it is not willing to allow price increases that take away the profitability of other sectors of the real economy.

Meat

The Government is giving the latest definitions to what will officially be announced as the “Careful Prices” for meat.

During the last week, negotiations with refrigerators to agree prices on the main cuts of beef.

The official objective is for the program to have between 10 and 12 cuts called “popular”, which are the most consumed in the family table: which will include roast, vacuum, slaughter, minced meat, shoulder, meat and cuts for milanesa, among others.

The Government is giving the latest definitions to what will officially be announced as the

The Government is giving the latest definitions to the “Care Prices” program for meat

In the official drafts it appears that they will have a 25% average discount with respect to the values ​​in force in butchers and supermarket chains.

This is a reduction that would serve to roll back the last increases in the meat prices, especially during November and December.

As happened with the three barbecue cuts, now the focus will also be on the supermarket channel. There you will find the “careful prices”, as is the case with the industrialized food program.

The definition of prices the public and logistics will be resolved between next week and the following, when the businessmen of the sector are summoned. Basically the ABC consortium, the largest meat exporting group in the country, and also the supermarket chains.