"Price controls never proved effective", assured a specialist from Bahia

After learning that the new Secretary of Domestic Commerce, Roberto Feletti, proposed the freezing of prices of 1,245 items of the basic basket for a period of 90 days, in an attempt to put a brake on inflation, the Bahian economist Juan Manuel Larrosa, head of the IPC Online, said that it is “a measure that never proved effective, I don’t see why it would be effective now. It sounds desperate.”

“It is clear that after the elections there will be a devaluation or, at least, an adjustment, something that will lead to higher inflation and that is why they are targeting this type of measure” to try to contain the rises in consumer prices, he added. Larrosa, when analyzing the details of the agreement proposed by the Government to freeze retail prices until January 7.

To lower inflation, the Government seeks to freeze the prices of 900 products until January 7

“It is a very unexpected decision, since it had not been talking about this, and it is doomed to failure,” he said.

For the head of the IPC Online, “they try to scare the supermarkets so that they do not raise prices, but that is not the cause of inflation. The real cause is the billions of pesos circling the market, with reserves each time smaller. With all the amount of money printed, the expectation is of a very strong devaluation. “

“I suppose that the supermarkets are going to oppose or try to negotiate a smaller list” of frozen products, the economist conjectured, before assuring: “I don’t know how much margin they have to oppose but, as I read, they are warning them by applying the Supply law “.

Finally, when analyzing the inflationary evolution throughout the year, Larrosa explained that in his measurements “inflation for the February-April quarter gave us an average of 3 points, then we registered an increase in May of 4% and then settled at 2 , 5% during the last quarter, which is the average of the last ten years “.

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