Argentina's National Institute of Statistics and Census (INDEC) revealed on Tuesday that the country recorded an inflation rate of 2.7% in October.
October was the month in which Argentina experienced a significant drop in inflation as a result of the “shock therapy” policies implemented by President Javier Millay upon taking office in December. The South American country has continued to reduce its inflation rate to 2.7% from 25.5% at the beginning of the year. meanwhile septemberthe inflation rate was measured at 3.5 percent.
In the latest detailed monthly reportINDEC explained that October's 2.7% result represents an average inflation rate derived from multiple categories. Food inflation in October was measured at 1.2%, making it the category with the lowest inflation rate for the entire month and the lowest result in this category since June 2020, when the previous government of socialist Alberto Fernández took office. It became. reportedly Sharp price controls were implemented.
According to INDEC details, the categories with the highest inflation rates in October were housing, water, electricity, gas and other fuels at 5.4%, followed by clothing and footwear at 4.4%. Core inflation, which excludes seasonal and regulated prices, was 2.9%, down from 3.3% in September.
President Javier Millay celebrated the results via social media. Millay shared a photo on Instagram with the October inflation results, along with the text “Let's go to Toto.” [Argentine Economy Minister Luis Caputo] Fuck! ! ! “
In a post on Twitter on Tuesday night, Millay explained that financial inflation is currently measured at an annual rate of 2.4%, and if current trends are confirmed for two more months, Argentina's monthly currency devaluation rate will be He pointed out that it could drop to 1%.
“If we subtract induced inflation (pre-fixed currency devaluation + international inflation), currency inflation is running at 0.2% per month, or 2.4% per year.If this inflation is confirmed for two more months, the monthly currency The devaluation will go down to 1%,” Millais explained, before saying “VLLC,” an acronym for his widely famous catchphrase, “Long live freedom, damn it!”
Economy Minister Luis Caputo congratulated October's achievements. remarks Given to Argentina's Radio Mitre, he said it was great data and particularly positive “because this is what we have been trying to do.”
“We have been working on reducing inflation, which has been a very difficult task.The current inflation rate is 2.7%, which is very close to the international inflation rate in terms of diversifying exchange rates. '' Caputo explained. “As long as inflation is maintained, the idea is to reduce the monthly adjustment creep level to 1% and reduce the inflation level to a new level.”
“We are at a moment where inflation is falling significantly, relative prices are being reconfigured, and freight, food, fuel and exchange rates are no longer subsidized as they were before,” he continued. “All of this was inflation swept under the carpet. Getting inflation down from December levels to where it is now is very important.”
Asked about the lifting of Argentina's long-standing currency controls implemented by the previous government, Caputo said it was not a matter of the date, but that the Argentine government believed that lifting the controls would be “as minimally traumatic as possible” for the people. He explained that certain conditions had been set in order to “keep the number of people in line.” country.
“We don't want to get our hopes up. Obviously the situation is converging in the direction we want it to be. It's just a matter of time,” Millais said. “Today, technological investments in the real economy are much more time-consuming and the president has the world's attention. We need to get out of control at a time when it poses no problem for Argentines. be.”
By the time Millay took office in December 2023, Argentina was on the brink of a hyperinflationary spiral and complete economic collapse due to the disastrous policies of Alberto Fernández's former socialist government.
Tuesday, during Caputo. participation At the 2024 annual conference of the Latin American Economic Research Foundation, the economy minister stressed that the current Argentine government has received “the worst legacy in history” and that “Argentina did not have credibility decades ago.” .
As a result, Caputo said the government needs to “show results from day one,” adding: “The more time passes, the more we leave behind the negative effects of the previous administration's terrible monetary policy, and the worse our public finances become. ” he emphasized. Monetary policy is prevalent. ”
Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.
