Argentina to Launch ‘Fair Prices’ Program to Battle Raging Inflation Numbers – Economics Bitcoin News


The government of Argentina has begun to act in several directions to control the raging inflation numbers registered this year. Sergio Massa, minister of treasury, proposed a program called “Fair Prices,” to force retailers and producers to establish a fixed price on various products, to be maintained for up to 90 days.

Argentina to Rely on Price Controls for Inflation Battle

The raging inflation numbers that Argentina is facing this year have prompted the government to propose a series of actions directed to curb inflation during the last three months of 2022. Sergio Massa, minister of the treasury of Argentina, has proposed a system of price controls to maintain some prices at fixed levels for at least 90 days.

The program, which has been named “Fair Prices,” will be the result of a series of talks with companies that produce goods of mass consumption, in which the prices of these goods will be directly indicated on the packaging. The program will include not only foods and beverages but also other kinds of products including cleaning supplies, appliances, and medicine.

About the implementation of such a measure, Massa stated:

We make macroeconomic decisions with the intention of starting down a downward path because inflation is the worst punishment that a worker can have in Argentina. It is key that we do it on the basis of everyone understanding that we are in a time in which we all have to give a little.

Inflation Levels and More Price Control Schemes

The proposal is seen by some as a double-edged sword, given that price controls have often deviated into creating more inflation, as controlled prices can result in the appearance of black markets and scarcity, as happened in Venezuela during the last decade. In fact, Argentina already has another price control structure established called “Supervised Prices,” which includes 452 products of leading brands in the country that will receive a defined increase in the last three months of 2022.

However, the compliance of supermarkets and stores with this program is at 60%, with the Argentine government doling out hefty fines to several stores and retailers. Secretary of national commerce, Roberto Feletti, stated in March this was the product of the “speculation of those who want to buy more apartments in Miami, because they want to validate a 50% increase in dollars in their stocks.”

Inflation is predicted to reach more than 100% this year, with Consumer Price Index (CPI) numbers reaching almost 80% in August. This, and the numerous exchange rate controls of the country, have also caused Argentines to use crypto as a means of hedging against inflation and preserving their purchasing power.

What do you think about the new price control scheme to be launched in Argentina? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

Related articles

CoinShares Experiences $1.9B in Weekly Crypto Inflows, Ethereum Leads the Pack

Trusted Editorial content material, reviewed by main trade specialists and seasoned editors. Advert Disclosure The digital asset funding area maintained its upward trajectory final week, with inflows into crypto funding merchandise reaching $1.9 billion,...

Harmonic, an AI math startup co-founded by Robinhood CEO Vlad Tenev, unveils its mannequin Aristotle, saying it achieved gold medal efficiency on the 2025...

Featured Podcasts Techmeme Journey House: Tea Has Been Spilt The day's tech information, on daily basis at 5pm ET. Fifteen minutes and also you're updated. Subscribe to Techmeme Journey House. Sponsor this podcast Decoder with Nilay Patel: ChatGPT could be...

Overbought Market Meets Rising US Greenback and Tightening Liquidity

Shares completed largely decrease, with the equal-weight Invesco S&P 500® Equal Weight ETF (NYSE:) down about 60 bps, whereas the market-cap-weighted index closed flat. In the present day kicked off what needs to...

FYNXT Hires StoneX Veteran Camila Pinto as Industrial Director for UK and LATAM

Singapore-based know-how supplier for brokers FYNXT appointed Camila Pinto because the Industrial Director for the UK and LATAM. Pinto is answerable for, amongst different duties, shopper acquisition throughout the areas.“After 15 years in Monetary Companies,...

#9 – “Establishments Cannot Beat A Primary Purchase and Maintain Allocation” – Meb Faber Analysis

Pension funds’ annualized mixture returns since 2000 have been...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com