MercoPress. South Atlantic News Agency
Dujovne foresees Argentina's October inflation “will be bad”
“Society is going through a difficult time,” admitted Dujovne. Argentina's Finance Minister Nicolás Dujovne Tuesday admitted October's inflation “will be bad” due to the September carryover. But he expected “a clear drop” for November.
The peso devaluation in August was passed onto both wholesale and retail prices in September, which will show in October's figures, Dujovne explained.
He added that for this reason “the October number will be bad, even when the high frequency indicators are showing lower variation numbers” that will be “more visible towards November and December.”
Dujovne made these comments after a cabinet meeting headed by President Mauricio Macri at the Casa Rosada.
He also acknowledged that “society is going through a difficult time,” but promised inflation will “slow down from now on.”
Dujovne underlined that “the figure of 23% year-to-year in December, is not unattainable”, after arguing that Argentina “has no inflation targeting scheme, but monetary aggregate goals.”
With the congressional approval of the 2019 budget still pending, Dujovne said that “the goal is to preserve the monetary base in nominal terms until July next year, and then the Central Bank will redefine how fast it moves.” He estimated it will not exceed 1% per month.
Central Bank President Guido Sandleris concurred about inflation in October and a drop for November and December, as he added that the inflationary spiral began in April and reached a peak in September, which according to the Indec accumulated an increase of 6.5%.
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Read all commentsA pitiful minister trying to justify the unjustifiable.
Oct 28th, 2018 - 08:49 pm 0Consider that the government presided by Mauricio Macri ran its campaign partly on the previous government's incapacity to reduce an inflation if about 25 per cent and promised Argentines to end it in a very short time.
“Inflation, that's the easy thing to do,” said Macri, adding that he wanted to be judged on his ability to reach that goal.
Almost three years later, a period during which every single economic indicator got worse, Macri has resorted to blame everything but himself for the present mess that includes getting last-resort help from the IMF to extend the government's survival.
A sad end for the parroted “best government team of the last 50 years.”
“Almost three years later, a period during which every single economic indicator got worse”
Oct 30th, 2018 - 06:10 pm 0Again, not true. https://tradingeconomics.com/argentina/gdp
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