“Inflation in average is beneath the inflation in monopolistic or oligopolistic sectors”

City of Buenos Aires, May 12, 2011

Today a new headquarters of the Central Market opened in Jose C. Paz and M24Digital contacted Esteban Ackerman, BA in Political Science and Master in Economics, to fully understand the implication on the economy.

“The basis is that the problem of inflation is the mediators, the retailers. That is those that make an increasing margin in inflation, who do not reflect the increase prices in the Central Market as there is a larger margin because the market place these products, “he said.

To illustrate, Ackerman said, “If they buy at 10 and sell at 20, and then they buy at 15 and sell at 40, then their adding to their profit margin. To a large extent it is true that in Argentina there are 6, 7 supermarkets that monopolize the retail market in the country.”

But he said that “the problem of inflation is not only commodities, but the poorest sectors in Argentina. Average inflation is outweighed by the sectoral inflation from those with monopolistic or oligopolistic control.”

He also said that “free fairs or locations extending the central market” would be “very positive for the popular sectors, which are the ones who spend more of their income on food” and completed: “I do not think it would have effects on small businesses . It would increase sales volumes.”