Inflation ate household purchasing power

Inflation ate household purchasing power

Roberto Hernandeza professor at the Latin American University Corporation (CUL), said that one of the most relevant causes of the increase in inflation is that Colombia is a country that imports many products, which became more expensive due to the increase in the exchange rate, which is more than reached $5,000.

“We produce wheat, but we also get it from Canada and if we buy it at a high exchange rate, everything goes up and it affects essential products in the Colombian family basket, such as bread,” he assured. THE ANNOUNCEMENT.

He recalled that global uncertainty was generated in terms of investmentsTherefore, most investors turned to strong currencies, which caused the rapid devaluation of the Colombian peso against the dollar and the euro.

“We are in this process of economic reactivation that has been going on for a year now, but the blow from the last two years where the economy shut down has been strong, so people want to make the most of this situation. The effects they’ve been seen in the skyrocketing prices of practically all awards,” Hernández said.

Another ingredient that caused inflation to spike this year was the conflict between Russia and Ukraine. “Because they produce a lot of chemical products that are used for agriculture, the industry saw that effect and raised prices,” he explains.

Businesses are facing the consequences. The merchants of Barranquilla assured that sales have fallen largely due to the increase in the price of products.

Jorman Quintero, manager of a store in the north Barranquillaexplained that almost all products in the family basket showed increases.

“A green banana used to sell for $400, now it’s time to sell it for $500, and that’s why people complain, but how do you do that when you buy it from the market and everything starts to go up,” Quintero said.

Jairo Perez, shopkeeper Lonelinesssaid their sales dropped significantly after the price increase.

“A basket of eggs used to cost $12,000 and now it’s $18,000 or even $20,000. The kilogram of cheese is worth up to $19,000, which represents an increase of up to 40%. A pound of potatoes used to cost $1,000, but now it sells for $1,500,” said the trader, who stated that all products significant increases in this last year.

Source: El heraldo