Import Vs. Inflation: 167% more clothes came from abroad, what happened to the price

Although the image is similar to consumers, Something has changed in the textile industry what An “over-protection” passed through the leg that stopped imports reflected in March to a peak, with 167% year-on-year increase in finished garment revenueDirectly from abroad, for marketing purposes.

Evolution Consumer Price Index no (CPI) for clothing and footwear in the last four months stimulus From the statement made Fundacin ProtejerIt represents and ensures companies in the national textile industry Complies with price agreements, Even with increases that were below general inflation.

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According to Luciano CalpeoneThe last increase shown by INDEC was the head of the company “Not explained by increase in domestic industry prices supplier of textile inputs, which complies with the price agreement signed with the Govt”.

CPI for apparel and footwear accumulated 28.9% as on April 2023.Influenced by two strong monthly variations Seasonal change, March (9.4%) and April (10.8%).

However, although the monthly CPI for this item showed a higher growth in April, In four months it is below the general CPI foodsIt has been there for three consecutive months with monthly variations Above 9%.

In this sense, he insisted Manufacturing Industrial Production Index (IPIM) Textile Products, in April 2023, a The overall variation for textiles is 14.8%., Two points below what is allowed in the framework of fair prices.

“The rise in prices of clothing occurs in an environment A sharp increase in the import of textile products Those directly affected Exchange rate movements“, Mark Calfion.

According to the Protect survey, Imports of garments from abroad grew by more than 74% in tonnes year-on-year between January and March From 2023 onwards; Also, only in March peaked at 167%Corresponding to the same month of the previous year and 220% in February 2023.

The contract was executed

In January 2023, suppliers of textile inputs formed a price agreement with a downward plan for the first four months of the year.

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Contract rated a Accumulated price variance of 16.8% At least till March and 20, 6 till April, ie a An average increase of 4.8% Below overall inflation.

“Manufacturers of textile inputs have complied with the agreed schedule, which is reflected in the Manufacturing Production Index data and endorsed with the latest IPMI data for April, which is a Cumulative variation of 19% against 20.6% allowed in price contract” said the cloth merchant.

This number is not less than the cumulative number agreed and signed in the price schedule, 24 points behind the variation of the official dollarfrom Total price inflation of manufactured goods was 25.9% and general inflation was 32%. For the month of April.

For this reason, local producers point out that prices occur in an environment Strong growth in apparel imports.

enough

On the other hand, the report reflects that industry shows a Moderate productivity with cAtas in February and March 2023This gives a growth of 0.2 in the first three months of the year.

This data is added to the last indicator Established capacity February 23, a status showed 52.4% utilizationIt represents a percentage A decrease of 5.7% compared to the same month in 20202.

Due to this, the price hike seems to be related, the textile industry assures “Business Tricks” as Los Adjustment for Exchange rate movements What they do Some prices “run into the blue”, and “other causes alien to the evolution of the national industry producing industrial inputs“, they describe.

In this regard, some traders in the sector agree when examining the rise in imports in recent months. “Fair Price Effect” It implemented official dollars for mass consumption companies joining the program.

“It’s possible Large retail companies or international chains Some have reduced prices foods Y, With provision made in foreign currency, Dress entered“, assured HistorianReference to local industry.

At the same time, they aimed Distortions caused by the exchange rate gapLos Different exchange rates and scarcity of foreign currency. As they described, many importers seek Speed ​​up the entry of foreign goods Without the need for currency exchange at the import system (SIRA).

This tool is a Final product price Because the buyer is less of alternatives Pursuant to an undertaking to pay abroad. On the one hand, it can be done Dollars in the financial market It refers to high cost or demand financing abroad, which is currently provided at the rate 15% in dollars.

In the meantime, if the importer decides to follow Phase in SIRA to pay with official dollarsWithin 180 days, delay in processing and lack of security about the future value of the currency This also puts pressure on the final price of the product.

Based on these data, the General Commercial Federation of the Argentine Republic (CGERA), Rejected that overseas procurement has reduced sector inflation and proposed a review Argentina cost.

“Traders know that there have been increases, but it is clear that imports are not the solution; we need to discuss the cost of Argentina and not think that the industry is to blame,” he said. Marcelo FernandezHolder of CGERA.