From today YPF increases the price of fuel by an average of 2.5% at the country level. So far this year, the oil company has raised prices four times, with an accumulated increase of around 16%. It expects that Shell, Axion and Puma will apply a similar adjustment at the pumps in the next few hours.
In the last two weeks, the Treasury requested assistance from the Central Bank in the form of profit transfers of 60 billion pesos ($745 mn). The government will use the $4.27 billion margin it still has for 2020. The Central Bank can finance Treasury in two ways: transitory advances -TA- (10% of the monetary base or 12% of the collection of the last 12 months) and profit transfers.
The start-up of the activity, the growth of demand in some areas and the exchange rate instability revealed a new problem for the industrial chains: the lack of inputs. A report by ADIMRA, the association that brings together firms in the sector, shows that almost 7 out of 10 companies had problems acquiring products from their suppliers. Sixty-eight per cent faced difficulties with procurement in the domestic market, and 22% had issues with customs.
The rise in the international prices of soy and corn revalued the local harvest to $24.33 billion, which represents an increase of 43% over the previous cycle and a possible income of foreign currency - taking into account the values of the main exportable products such as by-products and soy oil - of around $26.5 billion, showing a rise of 14% over the previous campaign, according to an analysis made by the Rosario Stock Exchange.
Half of the wages in the formal sector of the Argentine economy are below the poverty line, according to official government data. In October, retail inflation was 3.8%, but Food and Non-Alcoholic Beverages increased by 4.8%, Apparel and Footwear increased by 6.2% and Home Equipment and Maintenance increased 4.5%. These are all items that are closely linked to the maintenance of the middle-class condition. With the deterioration of the purchasing power of formal salaries, what is happening is that even with formal salaried employment, income is not enough to get out of poverty.