Following the announcement made last week by President Gustavo Petro on an agreement with businessmen to design and implement measures to reduce food prices, the president of Andi, Bruce MacMaster, He referred to some of the efforts that they will promote.
(See: Colombia, among the countries with the lowest cost of living in Latin America).
“At Andi we have been insisting on the need to correctly characterize inflation in order to offer solutions”, said the union leader.
He also assured that:If we want to solve inflation we have to solve its causes”.
In March, inflation reached 13.34%, andhe highest figure recorded in the country for 24 years.
(See: How much can high inflation impact entrepreneurs?).
In addition, yesterday Mac Master posted on his Twitter account the list of factors that he argues are behind the rise in prices and assured that “Inflation increased especially due to the increase in costs: logistics, ground transportation, imported prices, exchange rate, energy worldwide, global supply restrictions, procedures, taxes, fuel”.
In his trill he also indicated that “solving one or more of these will lower inflation”.
(See: Rents and transportation will keep inflation high).
As explained by the president of Andi, the price increase began, most likely, during the pandemic, with the logistical problems that generated product shortages and that, in turn, generated unprecedented global inflation.
This phenomenon, Mac Master pointed out, was strengthened by the war of the Russian invasion of Ukraine, which affects the prices of oil, natural gas and fertilizers, three essential products in the production of many products in the family basket.
“In Colombia we have local reasons that have been strengthening this trend. The increase in interest rates has been producing a very strong effect in terms of financing for companies, the increase in the exchange rate has been affecting all imported products and their raw materialsMacMaster said.
(See: Would high denomination bills help curb inflation?).
In addition, he highlighted increases in fuel and public services. Finally, it is necessary to highlight increases in local transportation, which according to the president of Andi, in the last three years has accumulated a relative increase of 20%, and weighs close to 16% in all national products.
“The increase that is transferred to the consumer on behalf of local transport is very large”, he pointed out.
LAURA LUCIA BECERRA ELEJALDE
Journalist Portfolio
