Argentina’s Food Prices Expected to Rise Above 50%

As 2023 ends, Argentina braces for significant inflation, especially in food prices.

The Commerce Secretary is negotiating with food industry leaders to control these increases, focusing on essential goods.

The election results have already led supermarkets to receive lists with price hikes up to 45% from multinational companies.

These hikes exceed the limits set by the official price program.

Some companies agreed to review the markups, but others remained firm, leading to delivery disruptions.

Continuous discussions with the industry aim to implement staggered price adjustments, targeting increases between 5% and 12% in November and an additional 8% in December.

The government states that companies have agreed to these increments and to retract lists with higher hikes.

The United Supermarkets Association is involved in these meetings, focusing on aligning post-election price agreements.

They aim to ensure supply and control undue increases, stating that the current program’s prices will be valid until December 10, 2023.

December is expected to see a standard 8% increase in prices.

Market sources reveal that while some companies rolled back their increases, others are sticking to their new prices.

This refusal has led to them withholding supplies, citing alignment with their cost structures.

Supermarkets with adequate stock can temporarily refuse these increases, but stock levels vary.

Supermarkets predict the new government will validate price increases around 50%, potentially driving more inflation.

Analysts from Aurum Valores estimate that November’s inflation will be around 11.5%, with December potentially reaching 17%.

The year-end inflation rate could approach 190%, reflecting Argentina’s challenging economic situation.