In April, before the announcement of the removal of the exchange controls, drops in prices were observed that had previously experienced increases. According to economist TNASpotorno, these measures aim to stabilize the market and provide relief to consumers amid a challenging economic context.
In this regard, Spotorno emphasized: "In the pricing negotiations, there was a mix of dollars being used, which was one of the problems of the exchange controls that kept the economy restricted." He exemplified that in the first half of April, significant drops in prices were recorded, such as in the case of tomato crates, which went from $50,000 in March to $25,000 in April.
On the other hand, it has been pointed out that many of the increases in food during March were of a seasonal nature, except for meat. Economic analysts anticipate that the cost of living in April could be below the 3.7% recorded in March, coming closer to 3%. Spotorno mentioned that inflation for April is expected to close around 3%, although he warned of a possible uptick in May.
Economist Fausto Spotorno shared his analysis on the impact of these measures on prices and anticipated that inflation could close at around 3% in April. With the recent slowdown in the dollar exchange rate, it is expected that the exchange rate will continue to decrease, potentially reaching the range of $1,000, which would reinforce the projection of a lower inflation impact.
The Argentine government has undertaken measures to combat price markups, urging consumers to avoid purchasing products with unjustified increases. Spotorno predicts that these actions will not generate an immediate impact on inflation and emphasizes that the elimination of exchange controls could stimulate a greater influx of products from abroad, increasing competition and pressuring local product margins.
In this scenario, Minister of Economy Luis Caputo has supported supermarket owners who have refused to accept inflated price lists from large manufacturers. The implementation of a new exchange scheme with a floating range between $1,000 and $1,400 means that the government will only intervene if those limits are exceeded. Since the removal of exchange controls, the official dollar has fluctuated, and inflation in April is expected to be around 2.9% or even 3%.
