Argentina is not making much progress in the battle again inflation. The country, which has one of the high rates of inflation in the western hemisphere, may suffer a blow in its programme to keep prices under control, reports the German website wsi.de.
One supermarket chain warned the government that tomato prices may go up in the next week, as the bad weather has affected the production, said the minister of Economic Affair, Axel Kicillof. Supermarkets are not allowed to demand more than 10.5 peso (1.17 Euro) for a kilo of tomatoes.
"Although the supermarkets are saying that the tomato prices will rise, the producers say that they won't, and that there are no problems with the supply. The government will not accept changes in the prices agreed," Kicillof said at a press conference. If necessary, the government may allow tomato imports.
"Tomato is a product of which the price depends on the season. Seasonal products do not have a large effect on the price formation. We need to wait and see whether prices for fruit and vegetables in general rise, which would affect the inflation," says Mario Sotuyo, economist at advisory bureau 'Economia y Regiones'.
