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/ Wednesday, February 16, 2022
Private sector forced to make adjustments
Retailers had to obtain alternate sources to effectively deal with delays in the supply chain
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Ileanexis Vera Rosado
ivera@elvocero.com
In fact, Difficulties caused by the COVID-19 pandemic in the production and distribution of vehicles have caused the value of used cars to also increase, and they are no longer an affordable option for buyers.
@iverarosado
f consumers feel that their finances are running out and that money is barely enough to pay for necessities, it is because the impact of inflation has been registered in different economic sectors. The food sector, for example, has experienced the greatest cost increases and is the one sector that reflects the most in people’s daily purchases. However, Manuel Reyes, Executive Vice The Housing Situation President of the Chamber of Food Marketing, Another segment of the economy that has Industry and Distribution (MIDA, for its Spanish registered strong inflation is the housing rental acronym), assured the sector has made significant sector. According to Rosita Alicea, president of adjustments to prevent increases in the cost of Landlords Association, rental prices have increased food products. He argues these adjustments have between 10 and 20 percent, depending on the allowed food inflation to be lower in Puerto Rico location. than in the United According to Alicea, States. who is also a real estate Reyes also pointed broker, in the San Juan out that they have Metropolitan Area rentals been more efficient does not go below $750 in obtaining alternate per month. She considers sources of supplies to the increase in rent to effectively deal with be a consequence not delays in the supply only of inflation, but also chain. of the transformation of “This has allowed apartments and rental us to have fewer housing into Airbnb, – Pedro Torres empty shelves and which further reduces the President, Puerto Rico Mortgage lower prices than in existing rent inventory. the United States,” he Bankers Association Regarding properties said. for sale, Mortgage Reyes said that Bankers Association for some time now MIDA has been asking the president Pedro ‘Peter’ Torres, acknowledged that Department of Labor to integrate the island’s areas such as Isla Verde, Dorado, Palmas del Mar, Consumer Price Index to that of the United States, Old San Juan, Rincón and housing complexes in and to publish the prices of all articles, not only Santurce, such as Ciudadela, have registered a the variation as it is done today. significant rise in value. But he explained there is no “That way, if the local index is under the same official data on the average increase in sale prices, system as in the United States, we will be able to which may respond to other factors. directly compare prices. Today, that cannot be “The housing shortage has boosted the value of done,” he said. the units. But it is very difficult to determine to what
The housing shortage has boosted the value of the units. But it is very difficult to determine to what extent, since it depends on their location.
extent, since it depends on their location,” Torres argued.
The Auto Industry
In the automobile sector, industry representatives admit prices have increased, although the prevailing low-interest rate in the market –which is between 3.99% and 4.95%– has allowed them to work around the situation. José Ordeix, president of the United Automobile Importers Group (GUIA, for its Spanish acronym), attributed the inflationary impact to the shortage of new units. “We have managed to keep the sector up thanks to the distributors’ efforts to offer a respite to consumers [who need to buy a new car],” Ordeix said. The difficulties caused by the COVID-19 pandemic in the production and distribution of vehicles have caused the value of used cars to also increase, and they are no longer an affordable option for buyers. “Used cars have appreciated, contrary to what was the norm –that a car leaving the dealership has already depreciated. This reflects the high demand for cars right now,” said economist Adrián Alós. According to Alós, part of the acceleration of inflation also responds to the fear of people and businesses of running out of products, or that they will become even more expensive, so they have decided to buy more than they need, which reduces the supply.
