After almost two months of exoneration of the general sales tax (VAT) to chicken, eggs, sugar, uncooked pasta and bread, the impact on final consumer prices has been very limited.
According to the Central Reserve Bank of Peru (BCRP), a reduction in prices was observed between 14% and 16% on average in the case of supermarkets, but less than 3% on average in the supply markets.
This is because the latter operate with a certain degree of informality, which makes them less sensitive to changes in the VAT.
In this regard, the head of the Ministry of Economy and Finance (MEF), Oscar Graham, defended the norm and pointed out that, if these measures had not been adopted, inflation in Peru would be above 10%. It is worth mentioning that, as of May this year, the consumer price index reached an increase of 8.09% and the BCRP expects it to close the year at 6.4%.
The result to the fifth month of the year was driven by the rise in the food and energy sector, where the advance was 12.17%.
“We do not see a country that has had a decrease in the price, what is being done are measures to mitigate this increase. It is difficult to reduce the price of fuel when oil continues to rise, it is difficult to reduce the price of corn and wheat derivatives when the price of corn and wheat remain high”Graham noted.
However, the Executive has been preparing a package of measures to continue mitigating the impact of rising food prices.
Thus, the owner of FEM He reiterated that work is being done on a new targeted food voucher for lower-income sectors, which will seek to cover the basic consumption basket. In addition to this, the bottom of the common pots and the popular dining rooms will be doubled.
Such measures, according to Graham, would be made official in no more than two weeks. This is because the Ministry of Development and Social Inclusion (MIDI) is updating the lists of beneficiaries so that social support reaches the people who need it most.
This measure is in line with what was proposed by the president of the BCRP, Julio Velarde, who last week supported the idea of granting a transfer to low-income families.
Carolina Trivelli, former head of the Midis, points out that the food bonus it was a request from weeks ago and now efforts must be devoted to making sure that this transfer is well managed.
“We must attend to the traditionally poor and the more recent poor, fruits of the situation. It is necessary to know well who is going to focus this help and how they are going to identify those who need it, “said Trivelli.
Likewise, the expert also pointed out that the value of the bond as well as its duration will be key. To do this, she proposes that this aid be provided while the rise in food prices continues.
“The bonus must last as long as food inflation continues to be at extremely high levels or as long as incomes do not recover in the big cities, in the labor market,” he specified. The BCRP forecasts that inflation will be between 1% and 3% only in the second half of 2023.
It is worth remembering that the last Yanapay bond reached more than 13 million Peruvians, implying a fiscal expense for the State of S/ 5,145 million.
Oscar Graham, Minister of Economy and Finance
“The set of measures we have taken has had an impact in such a way that, if we had not taken these measures, at this moment we would be with an inflation above 10%”.
Julio Velarde, president of the BCRP
“In the IGV on food we have seen little effect so far because much of the marketing is informal. Failing to pay what they did not pay has no impact on the price”.
Fuels. The head of the MEF said that the exemption from the ISC and inclusion in the FEPC of diesel and 84 and 90 octane gasoline prevented an increase of S / 4.50.
Measure. The IGV exemption expires on July 31 of this year.