Brazil’s Economy Minister asks for price freeze in supermarkets until 2023

RIO DE JANEIRO, BRAZIL – On Thursday, June 9, Brazil’s Minister of Economy, Paulo Guedes, asked food supply chain entrepreneurs to “put a brake on price hikes” to reduce inflation. He spoke so that a new table of values will be updated only in 2023.

The statement was made at an Abras (Brazilian Supermarket Association) event, while President Jair Bolsonaro (Liberal Party – PL) and Guedes shared a virtual panel at the “2nd National Supply Chain Forum”.

The president had already asked supermarkets to reduce profit margins on staple basket products. The country’s inflation reached 11.73% in the 12-month accumulated until May. It decelerated compared to April, and Guedes celebrated the result.

“I will end by reinforcing the request, which is the following: now is the time to put a brake on this rise in prices. It is voluntary; it is for the good of Brazil. In the same way that the governors have to put their hands in their pockets and help Brazil, the Brazilian business community has to understand the following: a little slower now, because we have to break this inflationary chain,” declared Guedes.

According to the minister, the country will be the first to leave the world inflationary crisis. Guedes said, however, that he knows that the profit margin of supermarkets is narrow but that the request is valid for the entire production chain.

“The conversation is as follows: ICMS, IPI, we reduce, so along the chain, truce,” he said. “New price list only in 2023. Lock prices. We will stop raising prices for 2 or 3 months. We are at a decisive moment for Brazil,” he added.

With information from Poder360