Argentina Implements 90-Day Grocery Price Controls to Combat Inflation, Reports Reuters

Argentina Implements Price Agreement Amidst Rising Inflation Ahead of Elections

BUENOS AIRES – The Argentine government announced a new price agreement on Friday aimed at capping monthly price increases at a maximum of 5% for a duration of 90 days. This initiative is part of the country’s efforts to combat soaring inflation, which has reached triple digits, as the nation approaches significant elections.

Economy Minister Sergio Massa made the announcement following discussions with representatives from various supermarket chains. The agreement, reached with officials from 31 local supermarket entities, aims to "stabilize" prices leading up to the national elections scheduled for October.

Minister Massa, who has recently secured the nomination to run for president under the ruling Peronist coalition, is set to face radical libertarian candidate Javier Milei, the top performer in the recent primary elections, as well as center-right contender Patricia Bullrich.

The new agreement includes tax incentives for supermarkets that adhere to the 5% cap on price increases and introduces a credit program for small and medium-sized suppliers to these supermarkets, as outlined in a ministry statement.

This move follows various government initiatives to freeze prices in response to an annual inflation rate that exceeded 113% in July. There are concerns that consumer prices may escalate further due to a significant devaluation of the peso following Milei’s surprising primary victory.

According to the ministry’s statement, "The objective of this deal is to prevent fluctuations in the official exchange rate—linked to International Monetary Fund conditions—from impacting the prices of essential goods, which would adversely affect Argentine consumers."

In addition to the price agreement, the ministry also declared a freeze on fuel prices until October 31, following negotiations with the industry.