The Argentine Ministry of Economy announced this Friday (11.Nov.2022) the price freeze on more than 1,700 essential products. The measure is part of the project “Fair Prices” and will be in force for 120 days in order to try to contain the advance of inflation and control the outflow of dollars from the country. The information is from the newspaper. Clarin🇧🇷
According to Sergio Massa, Minister of Economy, the project will run until February 2023. The application will be the responsibility of the Secretary of Commerce, Matías Tombolini, who must monitor compliance with the prices set both by supplying companies and in wholesale and retail supermarkets.
The products included in the plan “Fair Prices” must be correctly marked on supermarket shelves. In addition, consumers will have available an application, with the same name, to consult the products included in the program and report any irregularities.
See screenshots of the app:
Personal hygiene and cleaning products, dairy products, condiments, cereals, frozen foods, chocolates and different types of coffee are some of the items that will have their prices frozen from this Friday (11.nov).
The government has set the values considering the brands of the products. Atyes, for example the deodorant “Dark Temptation” of brand Axeof 150 ml, will cost 319.28 pesos (R$ 10.53), while the deodorant “Anti-bacterial” gives rexonawith the same amount, will cost 323.54 pesos (R$ 10.67).
The purpose of the measure is 🇧🇷achieve stability in the prices of essential products” consumed by Argentine families for a certain period of time, as confirmed by the government, in addition to providing greater predictability to the monthly inflation number.
About 100 companies, which represent 86% of mass consumption in Argentina, participate in the new agreement. Among the participants are Molinos, Coca Cola, Unilever, Quilmes, Mastellone, AGD, Ledesma and Las Marías🇧🇷 In addition, supermarkets will be able to supply private label products.
The new program also allows you to buy televisions, air conditioners, refrigerators, washing machines and cell phones in up to 30 fixed installments, both at the suggested retail price and domestically manufactured.
The existing program “Care Cuts” was integrated into “Fair Prices” and has red meat as the main focus. The 7 beef cuts with fixed prices and export restrictions are:
- Roast in strips – $765 per kilo (R$25.24);
- Diaper – $999 per kilo (R$32.96);
- Matambre – $969 per kilo (R$31.97);
- Guts – $499 per kilo (R$16.46);
- Steak cover – $765 per kilo (R$25.24);
- Coxão soft – $ 1,049 per kilo (R$ 34.61);
- Palette – $849 per kilo (R$28.01).
CROSS PLAN
Economic plans with price freezes were common in several countries in the 1980s. Brazilians had an experience in the Cruzado Plan of March 27, 1986. The then president, José Sarney, published a decree-law with this measure. It also determined the division of the currency by 1,000 and the change of name from Cruzeiro to Cruzado.
The Cruzado Plan managed to reduce inflation in 1986 from 12.49% in February to 1.4% in October. Sarney gained popularity. In November, he won the election of 77% of federal deputies. In the Senate, with the new elected officials, the government now has the support of 81% of the House.
But the plan caused shortages because producers refused to deliver products below cost. After the election, there was a thawing of prices. In 1987, inflation rose again. It reached a higher level than before the Cruzado.
SARNEY TAX OFFICERS
As soon as the plan was announced on February 28, 1986, Sarney urged the population to inspect retail prices. The people who dedicated themselves to checking prices and communicating readjustments, which were illegal, were called “Sarney’s inspectors”🇧🇷
The government’s inspection of prices was one of the main points of support for the Cruzado. The day after the plan was announced, a Saturday (1st March 1986), people were already on the streets and reporting price increases to Sunab (National Supply Superintendence). The federal government body would be extinguished in 1997.
The public’s participation in checking prices was so important to the government that the then Minister of Justice, Paulo Brossard, recalled that anyone could legally arrest anyone who committed a crime, and that this would apply to traders who illegally readjusted prices.
Afterwards, Brossard was nominated by Sarney for a vacancy on the STF (Federal Supreme Court). He died in 2015.
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