BCRP: companies continue to adjust their prices more than once a year

Companies from different sectors have adjusted their prices more than once in the last year, according to the Survey of Macroeconomic Expectations of April 2023 carried out by the Central Reserve Bank of Peru (BCRP). Although compared to the previous year they have been less. In detail, the primary sector (67%), manufacturing (59%) and commerce (52%) modified their prices more than once in the last year, while services (62%) only did so once mostly.

Regarding the results of August 2022, in all sectors the number of companies decreased that change their prices less than once a year. While to effect a decrease or increase in prices, the factors that they consider to be “important or very important” are the cost of inputs and the variation in demand.

In the case of mypes in the retail trade sector, prices rise between four and five times a month; In the manufacturing sector, the phenomenon is that, according to what they declare, they go up at least once, although most do not and prefer to sacrifice their profits and recover only the capital, explains Daniel Hermoza, director of Mypes Unidas del Perú (MUP). to the Republic.

In addition, according to Hermoza, this variation in prices has had a change in consumption habits in the population. “Inflation has resulted in a decrease in the consumption of products that we could call non-essential, such as clothing, footwear, ornaments and utilitarian handicrafts that are no longer sold because people prefer food,” he said.

What happened to wages?

In the four sectors, at least 70% of the employers stated that the salary was adjusted once in the last year, around 25% adjusted it less than once and only 2% varied it more than once, with which he BCRP concludes that wages have remained relatively stable across sectors. On the side of the mypes, in general terms, salaries are not increasing because this type of company works with a different dynamic from large and medium-sized companies, hiring seasonally or companies. During this time, it has been observed that there is little specialized labor in the clothing sector, and given their scarcity, these workers could receive better wages, explained the director of MUP.

boost consumption

According to the director of MUP, what is needed is for the government to implement countercyclical measures to boost consumption. “Give me clients,” he points out.

Direct more budget to regional governments to create temporary jobs and pay the debt to the exporters of the National Housing Fund (Fonavi) These are some necessary measures, according to Hermoza.