For the BCRA, in general terms, the current inflationary process is linked to the recomposition of margins in certain sectors, the reopening of parity rates and the impact of exchange rate pressures, to which is now added the external shock. He trusts that the agreement with the IMF will contribute to reducing inflation expectations, by ruling out a strong devaluation, so that towards that north monetary, fiscal and price policies will be combined. This is what he suggests in his latest Monetary Policy Report (IPOM) in which he deepens the analysis of the recent evolution of the relative price structure and what he expects from it. In this regard, it recognizes that the measures taken by the Government in the pandemic accentuated the deterioration of the relative prices of services in relation to goods, a trend that stabilized during the second half of 2021 due to the recovery in private services, which had been most affected during the period of greatest restrictions on movement. Regarding the evolution of domestic food prices, he points out that it was differentiated, with a marked recovery in the relative prices of fresh foods and a fall in processed foods. “In the last two years, very significant increases were also observed in the average relative prices of certain goods that were not reached by programs and on which there were supply restrictions, especially in automobiles and clothing,” he warns.
Source: Ambito
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