Argentina recorded an inflation rate of 13.2% in February, Argentina’s National Institute of Statistics and Census (INDEC) said on Tuesday, marking the second straight month in which inflation slowed as a result of President Javier Millei’s austerity measures. It was shown that
Mr Millay, who took office in December, instituted a series of “shock therapy” measures to avert a complete economic collapse in Argentina after his socialist government left the country on the brink of hyperinflation for nearly two decades. Mr. Millais began by eliminating hundreds of socialist regulations as much as possible, turning his attention to near-depleting foreign exchange reserves and a complex currency management system.
13.2% inflation recorded in INDEC’s February wide-ranging survey report lower than 15 percent Analyst The percentage predicted hours before the announcement was significantly lower than the 20.6% in January and 25.5% in December.
Argentina’s president’s office said in a statement on Tuesday that February’s inflation rate was the result of the government’s efforts to impose “strong fiscal discipline.”
“In his inaugural address on December 10, 2023, President Javier Millay told the Argentine people that they face an annual inflation rate of 15,000% and that he intends to fight against it ‘to the hilt’. ” said a statement from the presidential palace. To read. “That is a promise and a non-negotiable goal.”
— Officina del Presidente (@OPRArgentina) March 12, 2024
Millay on Wednesday morning interview Speaking on Argentina’s Radio Mitre, he said February’s numbers were a “tragedy” and acknowledged March would be a month with “very complex seasonality”.
Still, Argentina’s president stressed that February’s inflation must be placed “in context” as he accepted an economy that was definitely at risk of hyperinflation.
“When the government took office, daily inflation was running at 3,700 percent per year. In the second term, it accelerated to 7,500 percent,” Millay explained. “December’s overall inflation rate of 54% is annualized to 17,000%.
“This is the disaster left behind by Kirchnerism.” [socialists that ruled Argentina for 16 out of the past 20 years],” he continued. “When Kirchnerism finishes last year’s monetary figures, and hopefully it’s not just because this government’s election question was passed, the government has a monetary base of 2.6 percent of GDP. issued 13 points of GDP for
Millay echoed Economy Minister Luis Caputo’s concerns about soaring food prices and reiterated that the government would take the following steps: Expanding Approving food imports to lower prices and increase market competitiveness.
“The price maker set the price based on the hypothesis that 2,500 [argentine] Pesos per dollar. And instead of lowering prices, we started with promotions,” Millais said. “That’s why prices in Argentina have become expensive in dollar terms. We’re going to open up more and more so that competition can come in.”
“Food prices are very dependent on the dollar, and now that we are opening up imports, prices will come down,” he continued.
Millay also said Argentina was very close to lifting foreign exchange control restrictions, but stressed that it would continue with its economic plans because “we want to avoid hyperinflation.”
“lift” [foreign currency restrictions] It’s much closer than far.of [International Monetary] The fund estimates that this will be possible by the middle of this year,” Millais explained. “And some economists think we can do it right now.”
Millay argued that if he had lifted Argentina’s currency restrictions immediately after taking office, there was a “100 percent chance” that a run would have occurred, and he wanted to avoid that risk.
“The problem is, there’s no one who can guarantee that we won’t lose any points when we open. That’s why I said we need $15 billion to open right now,” Millay said. “I don’t want to take risks, prefer to endure this weak situation.” [economic] Increase economic activity a little more, but avoid hyperinflation. ”
“We are committed to eliminating inflation, and we are doing it. If you look at the numbers for March, despite the recovery, inflation is around 7-8%,” he continued. .
Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.
