13 products put on “red alert” due to price hikes
In total, the yellow alert includes about 90 products and activities.
The National Commission for the Defense of Competition (ProCompetencia) identified 13 products in “red alert,” a certain amount in yellow alert, and close to 90 in green watch as part of the results of its Observatory investigation of competition conditions in the markets.
Herring, sweet cookies, water bread, and sobado bread, “sopitas,” or chicken broth; candles, soaps, toilet paper and the Pension Fund Administrators (AFP) sectors; health, life, personal accident, agricultural and livestock insurance are part of the products that between July and December presented “abnormal inflation,” according to the report published by ProCompetencia on its website, in April 2023.
ProCompetencia identifies steel, specifically in the metropolitan area of Santo Domingo, for products with atypical increases in construction costs.
ProCompetencia’s Observatory presents three alert traffic lights: red, yellow, and green.
The red alert includes markets that show irregularities and needs with an open investigation process or in the decisional phase for alleged concerted practices, anti-competitive agreements, and abuse of dominant position.
There are 13 products in this group, including water bread, soba bread, malt, flour cookies, sweet cookies, health insurance, and iron and steel product manufacturing.
The Department of Economic Studies of ProCompetencia qualifies in the yellow alert the markets composed of “those that are present in a criterion and are recidivists, regardless of whether the criterion is the same or not, with the exception of criterion three, on characteristics and dynamics of the market.” There are 26 products in this group.
In yellow alert are included day care services, intercity bus tickets, ice production, production of packaged games for dilution, gymnasium fees, disinfectants, toilet paper, and wheat flour, among other products.
The products placed in the green alert are the majority. ProComptencia’s report corresponds to the markets analyzed that present indications in one of the evaluated criteria or were previously on a higher alert.
Also, repeat offenders are in criterion three. The green alert includes, among others, herring, corn flour, AFP, AAy P, manufacture of medicines for human and veterinary use, slaughtering and processing of poultry meat, health insurance, life insurance, agricultural insurance, coffee, rice and onion crops, and cheese production.
Likewise, egg production, cement manufacturing, cab services, vehicle insurance, soaps, candles, chicken broth, detergent manufacturing, milk and dairy product processing, and telecommunications. In total, the yellow alert includes about 90 products and activities.
Six criteria were adopted for the analysis: prices of essential goods of the family basket, growth of the economy in July and September 2022, characteristics and dynamics of the market, crucial intermediate inputs, regulations of interest, and the concerns of society.
Regarding activities with a high concentration level, between July and December 2022, onion cultivation, pasteurized liquid milk processing, yogurt production, beer, malted beverages, and malts are included.
In addition, health services, ice making, cookies, and others.