MercoPress. South Atlantic News Agency

Argentina: Milei reckons June's inflation to rebound

Failing to reach a zero fiscal deficit is also the consequence of politicians delaying the approval of the so-called Bases Law, Milei argued

Argentine President Javier Milei admitted that his country's process of curbing inflation would be making “a pause” from the 4.2% the National Institute of Statistics and Census (Indec) announced for May this year. In addition to a rebound in the decline, there will be no zero deficit, the Libertarian leader also admitted.

“Inflation will make a pause in its decline” in June, Milei told TN. Argentina will now have to “pay for what politicians did in” Congress, the head of state added about the Parliamentarian delay in approving the so-called Bases Law bill which the Executive claims contains the tools needed to rescue the nation from her plight.

Milei again praised his first six months in office and insisted his image and the expectations of the Argentines had grown since Dec. 10, 2023. However, “we are in bad shape,” he argued when explaining that his administration was dealing with the consequences of 20 years of disastrous administrations. He once again claimed salaries were outpacing inflation. “I am fully aware that we are in bad shape, but it is also true that when we took office 85% of the people felt bad and that number has dropped to 65% today,” he added.

“We are laying the foundations of great Argentina so that in 40 years they will say 'here was the turning point of Argentina, where it changed and started to be great again'.”

In this scenario, Milei was supportive of Ministers Diana Mondino (Foreign Affairs) and Luis Toto Caputo (Economy). He also recalled that Federico Sturzenegger would be joining his cabinet shortly. “He is one of the most brilliant economists on the planet,” Milei argued. “He is going to be the minister in charge of everything related to deregulation,” the president also explained.

Regarding next year's mid-term elections, Milei said Congressman José Luis Espert and Presidential Spokesman Manuel Adorni could top the Libertarian ticket. In Milei's view, Adorni “is a wonderful guy; the problem is that he is also a great spokesman, there is a problem there.” At any rate, Kirchnerism “will never come back,” Milei stressed.

Milei also warned that nobody would cut loose Human Capital Minister Sandra Pettovello, who is under heavy flak for numerous irregularities and scandals in her agency. In addition, “nobody is going to touch Caputo's ass,” said Milei about the man he claimed to be the best Economy Minister ever.

“Let them say whatever they want,” Milei insisted. “There is a boss, which is me” and “nobody is going to violate Toto's achievements; nobody is going to touch Caputo's ass. I will cut off his hand,” he elaborated.

Milei also denied that the International Monetary Fund (IMF) was asking for a new devaluation of the Argentine peso. “During the G7 meeting I had three talks with [IMF Managing Director] Kristalina Giorgieva,” Milei also recalled.

Asked about the rise of the so-called “blue” (a euphemism for “black market”) dollar, Milei claimed that those adjustments were due to the “noise” caused by opposition lawmakers seeking to influence the retirement law part of the Bases Law.

The Argentine President will be leaving for Europe again next week after the June 20 National Flag Day celebrations in Rosario.