Wednesday , January 27 2021

Another strong price tag in the food chronicle



from Francis Martirea Auber
@ martirena74

In a new round of increases, the chains of hypermarkets, provincial supermarkets, supermarkets, warehouses and wholesale centers started to raise prices for several products to 15%, then oil, flour and rice will increase by 5% because they are elements that are "tied up" with the US dollar.

According to sector sources, consulted by chronicle, Arcor has ordered increases of 10 to 15%; Unilever, between 6 and 7%; Dulcor, between 7 and 12%, and Nestlé also plans to do so. Similarly, cold cuts, dairy products, herbs and bleaching agents will be highlighted.

"The situation is over because suppliers are killing us with the increases", said the supermarket chain. The decision of the nuclear companies in the Copal Industries Co-ordinator (COP) has again been dropped by the Minister of Production and Labor, Dante Sika, who dared to highlight this in October last year "In the coming months, prices will slow down."

The processing of sensitive goods such as butter, flour and rice is a "War hammer" of official expectations expecting a fall in inflation and therefore in end-user prices.

In a scenario where lower inflation is expected in November, one of the chains was explained by this "The wave of increases is continuing, we are obviously in the stagflation scenario and we do not see a close exit",

Greater profitability

Other sources pointed out that companies continue to rely on higher profitability, despite the decline in consumption, a phenomenon that is particularly noticeable on the Argentine market. Since the last quarter of 2017, which has increased in comparison with the previous year with the collection of increases in parities, there has been a period of decline in consumption.

"The big problem is that the basket basket inflation is well above the overall", was mentioned. "In supermarkets, the situation is extreme because our suppliers are killing us with the increases, even in more than one chain talking about closures and dismissals", he was warned.

Also, on the behavior of the consumer, the trend of previous months is repeated, as "People buy in small quantities, even if they come several times a month, and keep buying cheaper brands", they pointed out.

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


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