Argentina: Alberto Fernández plans to alleviate inflation through price controls

The Argentine government is trying to curb the exponential rise in food prices in the country. To this end, this Monday, it began meetings with the main businessmen in the sector in search of a joint solution between both parties, however, if an agreement is not reached, the government will be the one to unilaterally determine the maximum prices of products.

After the month of August, which marked the lowest inflation of the year (2.5%), prices began to increase without limit. As a result, the government plans to launch an action plan with the aim of freezing the prices of 1,245 products until 7 January, but its implementation is still under negotiation with the country's companies.

The Secretary of Domestic Trade, Roberto Feletti, who was appointed just a few days ago, brought together the companies that produce and market goods to agree on a price freeze, due to the fact that some of the items had increases of up to 13% during the first week of October.

Feletti warned that in the first fortnight of October, food, cleaning and personal hygiene products experienced a price increase of between 10 and 25%.

"We think that prices have to go back and stabilise for 90 days, and take advantage of a scenario of a higher level of consumption that businessmen are going to take advantage of for quantity and not for price," said the Secretary of Domestic Trade.

Likewise, the organisation Consumidores Libres stated that, according to data released by supermarkets and neighbourhood businesses in Buenos Aires, in the first fortnight the basic food basket increased by 1.66%. So far this year, the accumulated sum is 43.05%, according to El Economista.  

The Latin American nation is facing one of the biggest problems of its economy, inflation. According to the latest official data, inflation levels reached 52.5% year-on-year in September, accumulating an increase of 37% in the first nine months of the year.

The food sector suffered a year-on-year increase of 53.4% in September, affecting the Argentinean population, where 40.6% of citizens are poor as a result of unemployment and rising inflation.

These new measures coincide with the Peronist party's need to recover its image in the run-up to the 14 November elections. Protests have been taking place across the country, criticising President Fernández's administration and demanding more jobs and better social benefits.

The current dynamics in Argentina, according to Euronews, could push inflation levels up to 48%, the highest rate in the region after Venezuela.

Latin America Coordinator: José Antonio Sierra.