MercoPress. South Atlantic News Agency

Argentina's Economy Minister foresees 1-digit monthly inflation imminent

Milei's popularity is not increasing but that of the opposition is sliding, Caputo explained

Argentina's Economy Minister Luis 'Toto' Caputo insisted Wednesday in Washington DC during his participation at the International Monetary Fund's (IMF) Spring Meeting that his country would be achieving a one-digit inflation rate shortly.

Caputo also seized his trip to the US capital to meet with potential investors to whom he outlined the South American country's economic course of action under President Javier Milei during an engagement at the JP Morgan bank. He also pointed out that unifying the various currency exchange rates available in Argentina would not be occurring any time soon and insisted that he had Milei's full support.

“The reality is that almost everybody expected a crisis to happen. When I said that I was going to join the President, everybody told me, don't be the first one, because the first one for sure is the one who also gets burned,” Caputo explained. He added that Milei's Government was relying on “extremely orthodox” fiscal and monetary measures.

“Even the most respected economists said that it was impossible to reduce the fiscal deficit more than two, two and a half points in one year. And we were able to reach a financial surplus in the first month,” the Argentine Minister stressed while recalling Argentina does not have the same tools as any developed country, “because we do not have credibility.” Caputo also underlined the “super difficult job” he undertook without a Congressional majority. The opposition does not “want you to do well no matter what they say on TV,” he added.

“Had we not done what we did, we would probably be in hyperinflation by now,” he insisted while forecasting a one-digit inflation for this month. “Almost everyone was pricing their products at the front line store with a dollar at [AR$] 2,000 because that's what all the economists in Argentina were telling them,” Caputo explained. Prices were set with a “very high exchange rate” in mind “which did not happen,” he underscored.

Caputo also admitted that Milei's popularity in Argentina was not increasing. Instead, the opposition's acceptance among voters was sliding, “which shows that this time around there is a change in Argentina.”