BUENOS AIRES (Reuters) – The Argentine government on Friday announced a price pact that would cap monthly price increases of up to 5% for 90 days for supermarkets as it seeks to contain triple-digit inflation as high-stakes elections loom. .
Economy Minister Sergio Massa announced after a meeting with supermarket representatives that officials would work with representatives of 31 local supermarket chains to “stabilize” prices until the national elections scheduled for October. He pointed out that an agreement had been reached.
Massa himself won the nomination for the ruling Peronist coalition in a preliminary vote last Sunday, and is running for president as the standard-bearer.
The center-left minister will face off against top-scoring radical libertarian Javier Millais in the US primary and center-right hopeful Patricia Bulrich.
In a statement, the ministry said the agreement takes into account a credit program for small and medium-sized enterprises that supply goods to supermarkets, as well as tax incentives for supermarkets that do not increase prices by more than 5% per month. Ta.
The move follows the government’s other price freeze policy to curb a surge in annual inflation that topped 113% in July. Consumer prices are expected to rise further in August as Millay’s shock primary victory led to a sharp devaluation of the peso.
“The purpose of this agreement is to prevent fluctuations in the official exchange rate, subject to the (International Monetary Fund’s) terms, from being passed on to the prices of mass-consumer products and adversely affecting the wallets of all Argentines,” the paper said. said. statement was added.
The ministry announced Thursday that it will freeze fuel prices until Oct. 31 following an agreement with the industry.
(Reporting by Maximilian Heath, Writing by Carolina Pulis, Editing by David Arile Garcia and Diane Kraft)