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Another strong note on food prices Chronicle

Why? Francisco Martirena Auber
@ martirena74

In a new cycle of increases, chains of hypermarkets, provincial supermarkets, supermarkets, warehouses and wholesale centers started to raise prices for several products to 15%, after a week of oil, flour and rice rose by 5 percent, because they are items "bound" the US dollar.

Depending on the sectoral resources consulted Chronicle, Arcor ordered an increase of 10-15%; Unilever, between 6 and 7%; Dulcor, between 7 and 12%, and Nestlé also plans to do so. Cold cuts, dairy products, herbs and bleaching will be highlighted in the same way.

"The situation is ending because suppliers are killing us with an increase", they said from supermarket chains. The decision of the nuclear companies in the food industry coordinator (Copal) again denied the Minister of Production and Labor, Dante Sica, which he decided to highlight in October last year "Prices will slow in the coming months."

The processing of sensitive goods such as oil, flour and rice is "Mazazo" to official expectations expecting a fall in inflation and, ultimately, final consumer prices.

In a scenario where lower inflation is expected in November, one of the strings was addressed in this way "The wave of growth continues, we are clearly in the stagflation scenario and we do not see close outputs",

More profitability

Other sources have pointed out that companies are still betting on higher profitability despite falling consumption, a phenomenon that is particularly observed in the Argentine market. After the last quarter of 2017, which saw a rise in the parity increase over the previous year, there was a period of decline in consumption.

"The big problem is that base basket inflation is well above the", stated. "In supermarkets, the situation is ending because suppliers are killing us with an increase, and in more than one chain there is talk of shutting down and releasing", was notified.

Similarly, the trend of the past months is repeated in consumer behavior "People buy in small quantities, even if they come a few times a month, and still buy cheaper brands", they stressed.

The US currency has and will have an immediate reflection in gondolas, partly due to imported components and also because of the speculative behavior that always occurs in the business sector, which leads to the liquidation of purchasing power.

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