Clothing is one of the items whose prices have risen the most over the last year. According to data from INDEC consumer price index, August inflation for the clothing and footwear segment was 9.9%, above the general index, which reached 7 percent. It is also the only item surveyed that has already exceeded the 100% increase year-on-year.
In this context, representatives of the Argentine Chamber of Clothing Industry (CIAI) and other companies in the sector signed an agreement with the Minister of Commerce, in which they voluntarily commit to maintaining until December 1st the prices for clothing in force on September 5, 2022 and ensuring a “reasonable supply” of the market.
It has been established that from December 1st and for a period of 180 days, prices will be adjusted in relation to the change in the official exchange rate.
The meeting was attended by the Economy Minister, Serge Massaand the Minister of Commerce Matthew Tombolini. Officials said the Secretariat will work with the sector to “program the flow of imports” with the goal that “it continues to be a sector that adds a lot of value.”
Meanwhile, the President of Argentina’s Clothing Industry Chamber, Claudius Drescher, stressed: “We have a responsibility to ensure that this agreement is fulfilled and we do so out of conviction because, like every Argentine businessman, we want the country to move forward. We want it to be a lot bigger and we’re working with textiles to make them join that table,” he added.
The agreement includes the prices of more than 60 brands, which will be available in malls, supermarkets and the companies’ own stores nationwide. In addition, it was determined that from December 1 and for a period of 180 days, prices will be adjusted in relation to the change in the official exchange rate.
The agreement provides mechanisms for the Department of Commerce to audit and verify compliance. In the event of non-compliance, the Secretariat will act in accordance with the provisions of the Consumer Protection Act and the Trade Loyalty Regime. The agreement was also signed by the United Supermarkets Association (ASU).
The brands are part of the contract: 47 Street, Addnice, Adidas, Akiabara, Amphora, Awada, Ay not dead, Azzaro, Baby Cottons, Bensimon, Billabong, Bimba, Bolivia, Bowen, Carmela Achaval, Caro Cuore, Cheeky, Clara Ibarguren, As You Want, Christopher Columbus , Cuesta Blanca, DC Shoes, Desiderata, Black Label, Furzai, Grimoldi, Grisino, Boer, Jasmine Chebar, Juanita Jo, Kosiuko, Herencia, La Martina, Lacoste, Las Pepas, Lázaro, Levis, Little Akiabara, Lola, Maria Cher, Markova , Midway, Mimo, Mishka, Naum, Nike, Old Bridge, Original Penguin, Paula Cahen D’Anvers, Perramus, Portsaid, Prune, Quiksilver, Rapsodia, Roxy, González Tailoring, Stance, System, Tascani, Taverniti, Uma, Vitamina , XL Extra Large, Yagmour and Zara.
The deal is not expected to have a major impact on inflation rates in the coming months: the Indec not only collects prices for the leading brands sold mainly in malls, but also in neighborhood stores in the Eindhoven and Avellaneda areas , among other things. In addition, it is a very fragmented sector and therefore it is very difficult to control prices.