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Francke on measures to contain inflation: “It is not a good answer to control prices”

The Minister of Economy and Finance, Pedro Francke, ruled out that the context of inflation and fuel surcharges could precede a price control policy from the Government.

In a dialogue with RPP Noticias, the MEF head explained that the oil situation, which has forced the United States to release its reserves in recent hours, has been attenuated due to the increase in the price of the dollar. However, he clarified that the exchange rate in Peru was less affected than in other countries in the region.

“It is not a good answer to control prices. We can do something there, but the best answer is to give people help – that’s why our bonuses – and jobs (…). Price control is something out of the question, we are yielding a little with the Stabilization Fund (LPG subsidy) and the purchase of fertilizers, but the blow (to the economy) has been very strong, “he said.

Francke Ballvé stressed, along these lines, that concern about the price of oil and the basic food basket cannot trigger “arbitrary measures” such as setting prices that are discordant to those of the free market.

“We see a difficult situation worldwide and we try to give an answer that is not populist or arbitrary, like saying that we are going to set a price that is not what the market allows. I understand people’s concern, but that’s not the way, ”he said.

The minister also stressed that, currently, the MEF does not assess an increase in the minimum wage that may affect the reactivation of companies. For this reason, he considered that the scheme for the delivery of bonds to the formal sector is the ideal.

“We are now giving another bonus to formal workers because we understand that even in the formal sector the salary has lagged behind. We do not want to burden companies with costs in advance. The State has a bit of fiscal space and we help families, ”Francke said.


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