Price | Inflation: What It Is and How It Affects Consumers in Peru | Appearance | Alicarp | Processed foods | economy

Latin America has been the region with the highest inflation in the world in recent months. Rate only in Lima, the capital of Peru Annual Inflation According to the latest INEI report it reached below 8%. A situation that affects the pockets of Peruvians, already affected by low economic growth.

Inflation has reached firms whose inputs are expensive and not to shift the new cost to consumers who suffer from inflation and shortages. employment; They employ strategies to maintain their profits”, explains economist Jorge González Izquierdo.

This event is called Doubled. “In essence, while reducing (or in some cases increasing) the quantity of goods sold to consumers Precious. It is a practice that has been carried out for decades, but has become formalized and sophisticated in recent years.”, explains a BBVA column.

This term is given to the economist Philippa ‘Pippa’ MalmgrenAn expert in geopolitics and technoeconomics, he notes in his book ‘Signals: How Everyday Signs Can Help Us Navigate the World’s Turbulent Economy’: “We talk about this. Doubled When a product reduces its quantity, its volume or the number of units sold in a single package, this reduction has the effect of lowering the price.

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What is happening in Peru?

For a few days, Peru Consumers Association (feature) has warned Peruvian consumers Doubled It affects many people.

Products most commonly affected by this trend are toilet paper, paper towels, detergents, shampoo, water, soft drinks, yogurt, cereals, gels, mayonnaise, butter, sliced ​​bread, pasta, etc.”They pointed out.

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An example, they cite, is the case of Noodles, because packages went from one kilogram to 950 grams, keep the price. Also, there are more brands in the market Oil One of the most expensive products since the Russia-Ukraine war- They don’t give a liter of presentation anymore.

Gonzales Izquierdo told, “(Reduction) is not a new trend, but a quiet trend. When we see this phenomenon, nobody talks about it, for example, in bread, they reduce your weight, but they continue to give 4 or 5 loaves of bread at the same price, thus Cost savings.

“Every good manager has to improve his management and not reduce his profit in the sense that he knows that because real income has decreased for many households, he cannot increase the price. Of course the elasticity will be low, the price increase will affect you more and you will lose income and profit,” he said. explained.

Among the companies operating in Peru, the company is the largest Processed foods, AlicarpFrom the Romero Group, in its financial results for the first quarter, its sales reached S/1,672 million, an increase of 1.5% (S/24 million) compared to sales in the same period of 2022. They explained that the lowest volume sold was 11.63% due to the combination of pricing strategies, products and channels.

“The consumer goods business increased by S/55 million compared to 1Q22, mainly explained by pasta, shampoo, conditioner, detergent, cookies, dishwasher, conditioner and bleach categories.”

Meanwhile, in the same period of analysis, sales volume Alicarp It reached 304 thousand tons (344 thousand tons in 1Q22), 25 thousand tons less in the B2B business and 15 thousand tons less in the mass consumption business.

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On the other hand, Consumers Association (Aspec) recommended reviewing the labels of processed foods or other products, “and looking for alternative products”. Doubled.

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