The inflation of meat and clothing will not stop in 2022, according to businessmen from both sectors

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Meat closed the last 12 months with an increase of 67.9%, against 58% of general inflation. The prices of beef cuts went from $975.41 to $1,057.74 per kilo on average.

“Unfortunately we have to say that, in principle, in the short term, the situation in terms of prices will not change. The drought that we suffered in 2021 affected this year’s calf, and this affects the level of meat production since it leaves us with fewer calves. This, of course, has a direct effect on prices and will continue to do so”, supported NA Miguel Schiaritipresident of the Chamber of Industry and Commerce of Meat and Derivatives of the Argentine Republic (Ciccra).

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Inflation in Mendoza: the clothing item had a strong growth in prices.

Photo: NA

Inflation in the clothing sector

The case of textiles is similar since it also shows growth much higher than general inflation, and its future outlook is not the most optimistic.

According to the latest INDEC survey, this item had year-on-year inflation last April of no less than 73.4% -almost 18 percentage points above the general-, a trend that in the sector itself admits that it will be difficult to reverse, and that so far this year already accumulates 29%.

The Fundación Proteger argues that the rises shown by international prices, with records in dollars for both commodities and energy, raw materials and textile supplies, led to sharper price increases.

To this must be added the consequences of the effect of the rise in the exchange rate. In this sense, the entity maintains that “the exchange rate increased by 20% in the last year making imported clothing even more expensive and last year, the total imported quantities of textile products reached the maximum of the last seven years”.

All these variables, it is estimated, will remain throughout this year -at least-, so thinking that a drop can begin to be seen is complicated.

Reference is also made to the inflationary inertia where factors that deepen the dynamics play, such as the distributive bid, exchange rate, costs, productive structure, tax pressure and interest rate. Inside this scene The effects generated by the Russian invasion of Ukraine also appear especially as a result of the increases in inputs used by textile companies, which have been showing increases of more than 40% compared to pre-pandemic values.

Source: NA

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