NEW YORK.- Faced with the recent statement made by the former reformist deputy, Emigdio Mercedes, that the government strategists have not known how to proclaim a good response to the population as to why the “high cost of living”, President Luis Abinader responded yesterday.
The president wrote on his Twitter this Thursday a message explaining the reasons why prices are still rising, and what the government is doing to mitigate this trend.
The president explained that the price of items is influenced by several factors, such as production costs, supply and demand. “The important thing is that, if there were not this increase in production, prices would be higher and there would be shortages,” he said.
Adding: “We would like to lower all prices, I would like to, but they are conditions that we have had to live with and manage, and we have done it the way the book dictates,” reflected the ruler.
Former deputy Mercedes, via telephone with this reporter, declared earlier this week that said strategists have not explained in detail the reasons that are causing price increases in raw materials, supplies, materials and in the articles that are produced and manufactured in our country, and those that are imported.
Globally, there has been an increase in all prices due to the scarcity of raw materials, inputs, materials and articles; and because of the slowness in producing them due to the staff layoffs that occurred due to Covid-19.
Likewise, there was little inventory and there was an excess of demand caused by the gradual opening of trade and when this happens, prices automatically increase.
In addition, these increases led to an upward variation in the insurance of the merchandise to be imported, and due to the over-demand and lack of containers, sea freight rates soared by up to 600%, and land freight rates increased significantly.
He said that what was indicated above, increases customs values and consequently more tax is paid, and finally, due to the increase in fuel prices, said the former deputy.
He specified that this lack of detailed guidance is leading to the high cost of living overshadowing the good actions of the government in the supply aspects of agricultural products, “confronting corruption, impunity, recovery and job creation through through free zones, industry and tourism”.
