Looks like inflation is going to come back if this keeps up.
With some things the inflation has never really left. Slowed down but not really left. And even the slowdown was a mirage because they did it with fake lower price of the dollar and inflated price of the peso.
This situation reminds me of a group of drunk fraternity brothers driving in a van screaming to go faster and faster. They don't know up ahead the bridge went out. Not knowing what is ahead. The bridge collapsed due to not enough workers to service them. All fired by the administration.
Look at the price of things. Beef, beverages, medical insurance, chicken, even vegetables and fruits. Don't even go into electronics and other goods.
How many times has Caputo and Milei said that everything is going great, there will be no devaluation, the dollar is going to fall like a piano and other such nonsense. The Central bank is intervening every single day in the CCL/MEP market place to try to control the dollar. They are blowing through their reserves.
The Central Bank can't build up their Reserves at all. What don't they understand? This is all a Ponzi scheme. Month after month the net reserves are still negative even after all of these austerity measures. Growth is non-existent, no one is buying anything. Inflation has gone down as much as it will go down. We will have 36% a year inflation, tax revenue is down. Who is going to pay back a loan? Certainly not Argentina. They want to use the IMF money to keep the peso overvalued.
No one will buy Argentina's overpriced beef and soybeans and other materials when they can go next door to Brazil. Despite the lies of Caputo and Milei devaluation is happening.
www.ft.com
