Argentina agrees with businesses to fix prices and alleviate the impact of inflation on households

The government of Argentina announced on Friday an agreement with supermarkets and suppliers of mass consumer goods to keep the values ​​of more than 1,700 products fixed or with regulated increases, in an attempt to contain inflation that could reach 100% this year.

In the midst of a delicate financial situation, with low international reserves and a high deficit, the announcement of the center-left government seeks that the measure contain the decline in the purchasing power of Argentines, many of whom have fallen into poverty in the last year.

“There is a commitment from all these companies that in the next four months, in the rest of the 30,000 products they produce, they cannot increase more than 4%,” explained the Minister of Economy, Serge Massa, by announcing the plan published on Friday in the official gazette.

“The objective of this program is to give them (Argentines) peace of mind. That when they go to the supermarket know how much things are worth,” added the official.

The agreement between the Government and the mass consumer goods companies covers the areas of food, beverages, dairy products, personal hygiene and cleaning.

Some items will have a 4% rise before entering the price freeze scheme for four months; others will start the program with current values ​​but may increase up to 4% per month, according to the government.