The customs director, Guillermo Michel, and the secretary Matías Tombolini announced that the new price agreement with companies will apply for 90 days. Prices accelerate due to the jump in the exchange rate and double-digit inflation is projected for the coming months.

After the devaluation and the increase in the parallel dollar, the Ministry of Economy announced the renewal of the Fair Prices program until November, with price increases at 5% per month. A powerless program to contain inflation and it was announced in days that there were price remarks due to the jump in the official dollar. They lose wages.

The program was announced by the customs director and who will head the Price Renegotiation Unit in the Economy, Guillermo Michel, the secretary Matías Tombolini, and the vice minister Gabriel Rubinstein.

Michel stated that “depending on the variation in the exchange rate, tax relief mechanisms will be established so that companies do not transfer the variation in the exchange rate to prices.”

Rubinstein said that he hopes that “companies will lower prices, (because) as companies comply with the agreements, that will help decompress the dollar.” The vice minister acknowledged that “business margins are very high.” Why are prices going to fall when higher inflation is expected?

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In a situation of high inflation there is a race to preserve profit margins where the economic groups that have the greatest concentration in the production and marketing of merchandise have the upper hand. This is because they can influence the setting of prices and thus take advantage.

According to the consultants’ projections, inflation could rise to 14% in the coming months as a result of Massa’s devaluation. The big businessmen are the winners of the inflationary process, it is like a parity that benefits the employers while they lose wages, pensions and social programs.

The union leaders have to be at the forefront of a plan of struggle to fight to recover the purchasing power lost in recent years and face the adjustment plan of the Government to comply with the IMF.

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Economy / National Economy / Devaluation / Inflation / Prices / Matías Tombolini


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