Despite the fact that the rise in food prices has been slowing downthey are still 21.81% more expensive than a year ago, being the item that most marks inflation; which was located at 13.34 with the annual variation of March.
(Read: Colombia’s request to Latin America to mitigate inflation).
For this reason, President Gustavo Petro announced that they reached an agreement with the National Association of Entrepreneurs, Andi, and the Society of Farmers of Colombia, SAC, to Design and implement measures that allow a greater reduction in food costs.
Inflation for food, low-income households, and agribusiness products continues to decline. We have agreed with the employers, the @ANDI_Colombia and the @SAColombia Design and implement measures to reduce food prices.
— Gustavo Petro (@petrogustavo) April 5, 2023
“We have agreed to work together to find solutions. There are macro and micro issues that are affecting prices and the economy, they must be solved“said the president of Andi, Bruce Mac Master, about it.
For his part, Jorge Bedoya, president of the SAC, stated that the union is ready “to work together in the design of measures on the factors that affect the costs of producing food in Colombia and that affect inflation“.
(See: Inflation closed the first quarter without a ceiling and is the highest in 24 years).
Now, another one of the greats contributions to the increase in inflation are accommodation services, water, electricity, gas and fuel. “It is time for businessmen to help moderate the inflation of industrial products and services,” said José Antonio Ocampo, Minister of Finance.
Inflation remained at around 13.3% in March, but we are pleased that inflation for food and poor households continued to decline. It is time for businessmen to help moderate the inflation of industrial products and services.
— Jose Antonio Ocampo (@JoseA_Ocampo) April 5, 2023
Along with this, María Claudia Lacouture, president of the Colombian American Chamber of Commerce (AmCham Colombia), said that “Prices for goods and services are not set by request, they are based on supply and demand. The entrepreneur works on a cost basis, where he seeks efficiencies, and from it the prices to the final consumer.“.
In addition, it highlights that imported inputs, the cost of energy and fuelsas well as salaries and benefits, including social security contributions, are part of that structure that has been increasing considerably in the last 12 months.
Lacouture also reiterated the call made to President Petro last January so that the Aliadas Alliance -which brings together 41 unions and organizations- forms a Public Private Economic Council to take measures that help mitigate the impact of inflation.
(Keep reading: The Colombian peso, the world’s fourth-strongest currency in March.)
This instance would work jointly between different sectors and unions that represent the business fabric, as well as representatives of workers, academia and other civil society leaders.
LINA QUIROGA BLONDE
Economy and Business WEATHER*
