Finally, Alberto Fernández's speech in which he promised to start the “war against inflation” did not have any concrete measures to push prices down. In a recorded speech, the President highlighted that Congress approved the agreement with the IMF to refinance Mauricio Macri's debt and alluded to the impact that Russia's invasion of Ukraine will have on inputs and commodities.
As a result, he emphasized the consequences that the increase in wheat could have: “It would increase the production costs of bread, noodles, flour that millions of Argentines and Argentines consume. And these are not increases that unfortunately we suffer due to the macroeconomic disorder we faced, but rather an impact that would hit households even more with unusual increases in the basic basket.”
Therefore, he anticipated that a “stabilization fund will be set up with the aim of preventing the transfer of this increase in the international price to the price paid by Argentines and Argentines” and said that the ministers of the economic area will take the necessary measures and will be responsible for communicating them from tomorrow.
“I have decided that the economic cabinet should concentrate from this moment on implementing all the measures necessary to deal with inflation, in particular what we see in food. I have given instructions to my ministers to build agreements with the different sectors but that they do not hesitate to apply all the tools of the state to set and enforce the necessary measures. They will be responsible for keeping you informed daily about the measures that will be implemented from this very moment,” said the president.
In addition, as Infobae anticipated, it ratified that it will convene from this Monday representatives of the productive sectors, entrepreneurs, formal workers and the popular economy, representatives of the countryside and trade, small and medium - sized enterprises and civil society.
In the end, he threatened unilateral measures from the State if it did not reach an understanding with all the sectors involved: “We hope to find agreements that will help lower inflation and ensure the increase in the purchasing power of wages. We will not stop controlling and controlling prices, applying the law of supply if necessary and using all the instruments available to the state to meet the objective of controlling prices.”
“Our battle today is against speculators. Against the greedy. Against those who seek even in such complex situations to obtain an extraordinary income. Against the usual agoreros, who will try to install the save who can or look for quick culprits and simple answers,” he insisted.
He added: “I won't get tired of repeating it: no one is saved alone. I will listen to your proposals and your concerns and convey to you the paths we are taking. It is time for each sector to think about its contribution to this crucial moment in the world and in Argentina.”
He then listed the goals he plans to achieve with these measures that will be known from tomorrow: “We are going to consolidate our Central Bank reserves. We will promote investment and domestic production. We are going to improve the financing of public policies. We are going to deepen the dialogue and the search for agreements to contain prices and improve revenues.”
Much of the speech was addressed to the consequences of Russia's invasion of Ukraine: “Russia and Ukraine are two very important countries in world grain production. They provide almost 30% of world wheat exports and nearly 80% of sunflower oil exports. Then the conflict ends up affecting the whole world, because it affects the production of raw materials, which are central to our daily food. I'm talking about flour, bread, noodles and dozens of foods that we consume in our daily lives.”
He continued: “That is why all countries are quickly beginning to seek supply of that good and prices are rapidly beginning to rise. A piece of information will allow them to measure the seriousness of the problem. Before February 20, the day the war broke out, a ton of wheat cost less than $300. The beginning of the conflict began an unusual rise that took it to record levels. In world history wheat never cost what it cost these days, reaching values greater than 400 dollars per ton.”
To bring it to the Argentine level, the head of state exemplified: “The domestic price of wheat used for bread, which was being marketed at around 26,000/27,000 pesos per tonne by February 20, rose rapidly to values above 30,000 pesos as soon as the conflict began, and in recent days it exceeds 35. 000 pesos per tonne.”
“This clearly affects us and adds to the many problems that we already have and that we all already know. It would be absurd to take the blame for our inflation on war. But the truth is that it is having a negative impact and causing greater problems. It is my duty to warn you that this international context complicates matters even more. Inflation is a serious problem for Argentines and Argentines. The war aggravates it,” he said.
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