Argentina will freeze the prices of 1,500 products to contain inflation

The Argentine government announced on Friday an agreement with supermarkets and suppliers of collective consumer goods to freeze or regulate prices of about 1,500 products, in an attempt to contain inflation Which is supposed to reach 100% this year.

The center-left Peronist government is battling a decline in popularity and street protests as soaring prices erode consumers’ purchasing power, even as severe deficits and dwindling foreign exchange reserves create risks to the economy.

The Economy Ministry said in an official decree that the new “fair prices” program, which includes consumer goods from food and beverages to cleaning products, will help “stabilize product prices for the benefit of the consumer.”

Some items will go up 4% before entering the four-month rate freeze scheme, while others will start the program at current rates but can increase by up to 4% per month.

Ahead of next year’s elections, discontent has begun to build, with poverty levels approaching 40%. On Thursday, thousands protested against the government and the International Monetary Fund, which have loaned billions of dollars to the Latin American country.

“We have triple-digit inflation. The increase in food prices is brutal and we are facing a tough December,” said protester Monica Sole.