MercoPress. South Atlantic News Agency

Argentina: Inflation is 1% daily, Caputo says

Argentina needs an orthodox fiscal policy, Caputo explained

Argentine Economy Minister Luis Toto Caputo said Thursday that inflation in his country stood already at 1% per day and insisted that measures were being taken to get out of this “financial catastrophe” through a classic orthodox stabilization plan. “We are in that process, but we are very confident,” he stressed.

President Javier Milei ”acknowledged that given the 20 points of deficit financing with monetary emission made it very difficult to get out of the cepo (stocks, or slang for exchange rate controls),“ Caputo also explained.

”Within the stabilization program we have this fiscal anchor necessary to reduce inflation and the complement has been made by the Central Bank with monetary measures,“ he went on. ”We are guaranteeing the independence of the Central Bank and strongly reducing the issuance.“

Meanwhile, Argentine consumers are facing exorbitant price increases following this week's devaluation: Meat went up 60% in the last 3 days and Christmas products are beyond reach for many, it was reported.

Popular meat cuts such as asado went up from AR$ 8,000 to AR$ 12,000 per kilogram, which has raised concern about the future of family budgets and purchasing power.

To make matters worse, traditional Christmas food went up 200% from last year, which heralds a significant decrease in sales.

In this scenario and contradicting campaign promises, the Milei administration has been reported to be entertaining the possibility of an increase in export duties, for which ”technical” talks will be held.

The government reportedly wants all industrial and agricultural exports to pay 15% export duties, except for soybeans, which will continue to pay 33%.