Published On: Mon, Feb 4th, 2013

Argentina Freezes Supermarket Prices Amid Spiralling Inflation

Faceless.me VPN

inflation-cartoonFrom Market Curator

The government of Argentina has announced a 2 month freeze on the prices of supermarket products, as spiralling inflation threatens to wreak havoc on the country’s economy.

Every product on the shelves of Argentina’s biggest supermarkets will now have to remain the same price for at least two months. Walmart, Carrefour, Jumbo and Disco are amongst the supermarket chains which will be affected, representing approximately 70% of national market share.

Monday’s announcement follows a deal between the nation’s main retail trade group and the government, in which the supermarkets agreed to the price freeze.

A hotline will be set up, allowing consumers to complain if they notice any price rises prior to April 1st.

Regional analyst had predicted that inflation could hit 30% in Argentina this year, making it the number one threat to the nation’s economy. The official government index puts inflation at just 10%, but this has lost credibility amongst both economists and the general public. The International Monetary Fund (IMF) recently censured Argentina for publishing inaccurate economic data, issuing a September deadline for the country to bring its reporting in line with international standards. If they fail to meet those standards, Argentina could face expulsion from the IMF. President Cristina Fernandex and Economy Minister Hernan Lorenzino responding by accusing the IMF of contributing to the economic crisis in Europe, by pushing government to favour the needs of the banking industry over measures which would grow economies out of the crisis. They have, however, announced that they will switch to a new inflation index for the final quarter of 2013.

The government has also vowed to hold public salary increases to 20% this year.

Enhanced by Zemanta

About the Author

- Dean Walsh is the owner and editor of World News Curator. He also owns and runs Ourly News and a range of other online publications.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>