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Javier Milei celebrated the inflation data: “Caputo's work is formidable” - La Nación
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Javier Milei celebró el dato de la inflación: “El trabajo de Caputo es formidable”
Tras el índice de 13,2%, el Presidente indicó que “hay que limpiarle seis puntos”; aseguró que no cederá “ni un milímetro” de su política de ajuste fiscal
www.lanacion.com.ar
March 12, 2024
After the 13.2% index, the President indicated that “six points must be cleaned up”; He assured that he will not give up “not a millimeter” of his fiscal adjustment policy
Javier Milei. (AP Photo/Natacha Pisarenko, File)Natacha Pisarenko - AP
After the publication this afternoon of the February inflation index , which marked 13.2% according to the latest report from the National Institute of Statistics and Censuses (Indec), President Javier Milei celebrated the data and announced that Argentina would be close of single-digit inflation. In addition, he highlighted the measures of his Minister of Economy: “The work of [Luis] Caputo is formidable.”
The President pointed out that February inflation would be 7.2% if it were not for “the effects of the statistical drag, which is 4.2%, and what has to do with the increase in rates and prepaid payments, which is only once" . So, Milei assured that six points must be removed from 13.2%.
“After the disaster we have had to face, Caputo's work is formidable. "He is worthy of admiration," the president celebrated in an interview on El Observador radio .
In addition, he revealed that, after Caputo's meeting with businessmen about prices, “the companies had valued a dollar at $2,500” and that they put in promotions instead of lowering prices. “The price is going down but it cannot be seen in the index,” he said.
The Minister of Economy, Luis Caputo, at the AmCham eventPilar Camacho - LA NACION
“We are truly very satisfied with the achievements we are having; no one expected us to achieve a deflation process of these characteristics . ” He then explained: “We have left the monetary base intact, that is what is allowing inflation to collapse the way it is. We understand that this is a frighteningly high number.”
Along the same lines, he assured that “he is not going to give a millimeter” in his fiscal adjustment plan. “ We are going to respect the zero deficit again in February, with a drop in revenue. We have continued with the chainsaw and blender plan, the drop in public spending is 36%, we are not going to give in even a millimeter,” he said.
As he had said this morning, Milei maintained that the stocks could be lifted in the middle of the year, but he will not do so until it is ensured that this will not generate an exchange rate run. “ We are honest with the economy. We lost 80% of our income. When we open the stocks the economy begins to rebound, according to the International Monetary Fund (IMF) it could be in the middle of the year,” she explained.
February inflation was 13.2%
As a consequence of the sharp drop in activity due to the liquefaction of income and retirements since December, the significant adjustment of public spending and the “monetary squeeze” promoted by the Government, inflation slowed in February. It marked 13.2%, according to Indec, a variation that reflects a slowdown in price increases, as Casa Rosada expected, but still at very high levels. In March, a seasonally high month and with expected increases in some rates, the Executive's challenge is to maintain the downward trend or, at least, tie the February record.According to the statistical agency, the first two months accumulated an increase in inflation of 36.6%, while, in the last twelve months, the national CPI reflects an advance of 276.2%. This is the highest year-on-year number since March 1991 (287.3%). The monthly figure is the highest since February of that year (27%).
shopping in supermarketDaniel Basualdo
According to Indec, the division with the greatest increase was Communication (24.7%), as a result of increases in telephone and internet services. They were followed by Transportation (21.6%) – due to increases in public transportation – and Housing, water, electricity, gas and other fuels (20.2%) – due to increases in electricity service. Food and beverages - the most sensitive chapter of the CPI - was 11.9%. Meanwhile, the core CPI - which eliminates regulated and seasonal prices - showed an advance of 12.3% in the second month of the year.
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