Thanks to Milei's management, food prices have dropped after the end of the restrictions and consumption is stabilizing
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In a new indication that the economic course set by the government of Javier Milei is beginning to bear fruit, the vice president of the Federation of Grocers of the province of Buenos Aires,Fernando Savore, confirmed in an interview that substantial decreases in food prices have been recorded following the lifting of currency controls and the slowdown in inflation.
Savore emphasized that, starting in March, wholesalers and manufacturers began to apply significant discounts on essential everyday consumer products. According to his explanation, these reductions did not arise from corporate generosity, but from the urgent need to maintain product turnover on the shelves in the face of increasingly strategic consumers.
El representante de almaceneros bonaerenses.
"We had to sell a leading brand chocolate milk for 4,500 pesos. A liter of milk at that price was unsellable. They gave us a 50% discount and it went from 4,500 to 2,250," Savore exemplified, marking a milestone in the sector's sensitivity to the new post-currency control market logic.
These commercial measures are added to a macroeconomic situation that is beginning to show encouraging signs: the Central Bank, in a recent presentation led by its vice president Vladimir Werning, projected inflation for May below the 2.8% recorded in April. In the same vein, private market operators are already estimating a CPI close to 2%, which would mean the lowest level in recent years in terms of price pass-through.
Savore was categorical in pointing out that the price drop was a direct reaction to the initial contraction in consumption: "The decreases hit so hard at the beginning of the year and in March with the lifting of currency controls. Since they are not selling, they have to reconsider not with their hearts but with their wallets," he said. His words reflect how the rules of the free market are beginning to operate more clearly after the removal of artificial restrictions and price distortions accumulated over the years.
Supermercados en la Argentina.
However, he also warned that toward the end of the month increases are being observed in products such as milk, coffee, and cookies, with rises of 2.5%, 5%, and 3% respectively. Still, he clarified that these increases are due to adjustments evaluated by the factories themselves according to the impact on demand, which creates a competitive dynamic beneficial to consumers.
"The factory sees that as a result of that increase, people can't buy it or switch to the SME brand, which also creates competition on the shelf," Savore explained, highlighting a commercial ecosystem where purchasing decisions and the search for more affordable alternatives are multiplying.
The representative of Buenos Aires grocers also expressed his expectation that this new economic stage, more predictable and less intervened, will allow for better alignment between supply and demand and provide relief to families who are beginning to adapt their consumption habits to a more stable environment.
Indicators and testimonies from the retail sector continue to consolidate a positive narrative around the libertarian economic plan: without forced controls or failed recipes, the market adjusts, prices fall, and consumers regain their decision-making power. The path is not free of tensions, but the first signs of recovery are already palpable on the shelves.
