Despite the slowdown in monthly inflation in May, prices continue to rise and Argentine consumers know that buying in installments is a good financial strategy. Especially if the rates of financing are low, as it happens with the “Now” plans.
After the last rate hike promoted by the Central Bank, the final costs for the user they rose and they were as follows:
- The rate is 42% annual fee for plans of 3, 6 and 12 installments (the effective rate is 51.1%). This cost compares against an expected inflation of 60.1% for the next 12 months.
- Los schemes of 18 and 24 fixed payments have a cost of 49% annual nominal against a projection of price increase that reaches 55.2% in two years.
This difference between the expected inflation and the cost of financing is what is technically known as “negative rate” and drives consumers to choose “Now” plans when buying in installments. In particular, for the 12-payment plans.
Sales with “Now 12” continue to grow
The latest report from the Production Studies Center of the Ministry of Productive Development detailed that, in May, sales with “Now 12” reached $150,866 million30.1% more than in May 2021 (measured at constant prices) and 61.4% more than in the same month of 2020.
Although the increase was less than that registered in April, the preference of the quota plans that the Government promotes to stimulate domestic consumption continues. “In six of the seven items of the program were observed year-over-year increases in measurement and two were below the level of May 2020 at constant prices,” the report highlighted.
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“Appliances and technology exhibited the best monthly performance with a rise of 29.7% compared to April and moderate magnitudes compared to May 2021 (+31.6%) and in relation to the same month of 2020 (+31.9%), “he explained. the portfolio now led by Daniel Scioli.
The other items with positive performances were tourism and sportwith a monthly increase of 14.1%; clothing and footwear with an increase of 3.3% compared to the previous month; Y toys which stood at a level 1.9% higher than in April. “The category of furniture had an outstanding monthly performance (+15.7%) but was positioned below May 2021 (-0.9%) and 2020 (-41.7%), “added Productive Development.
Until when is “Now 12″ valid?
The “Now” programs of 3, 6, 12, 18 and 24 installments will continue valid until June 30 with the new interest rates that were announced last week. The Ministry of Domestic Trade is already dealing with the players involved program renewalalthough there are no details about it yet.
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The quota plans promoted by the Government always apply to products of national industry or services provided in the country by local providers. However, the amount of fixed payments varies according to the item.