“You have to go back to 1991 to find an accumulated figure for the seven months of the year that is higher, which is serious, because in that year we were going to another hyperinflation, which was stopped with the Convertibility plan,” he recalled.
Abram estimated that in August the inflationary escalation “is going to calm down a bit”but predicted that it will remain high, around 6%, a percentage that, in his opinion, could be similar in September.
With these levels, the economist anticipated to the NA news agency that 2022 inflation will close above 90%.
He also said: “That people get rid of the weight so as not to continue losing purchasing power, it is a defense mechanism that we have seen in previous stages of hyperinflation.”
For its part, Victor Beckerdirector of the Center for Studies of the New Economy (CENE) of the University of Belgrano, stated: “In case there were any other element missing to warn about the seriousness of the current inflationary process in Argentina, the figure recorded in July revealed that we are getting closer to hyperinflation”.
“7.4% per month is equivalent to an inflation rate of 135% per year. If an anti-inflation plan is not adopted, the prospects for the year go through an increase in prices in the order of 100%”warned the economist.
And he stated about the rise in prices: “It is the greatest challenge facing the brand-new economic leadership: to implement a coordinated and consistent plan of fiscal, monetary, exchange and income measures that will ensure a drastic drop in inflation. The key lies in taking this group of measures together. Any partial measure will not work.”
Becker assured that “gradualism” to stop the inflationary escalation “is not an option”, and instead proposed “a shock treatment if hyperinflation is to be avoided”.
Meanwhile, the economist Ramiro Castineira He also warned of hyperinflation and explained: “In the world, when the interest rate rises, they seek to stop the rise in prices, but in Argentina what is sought is to contain the demand for Leliqs, so that the great castle is not disarmed of cards that they put together for 7 billion pesos”.
“So, it is crucial that the central banks do not issue remunerated debt because it is impossible to get out, it is a trap. Argentina, when it did that, ended up in hyperinflation. We already experienced this in 1988 and 1989,” Castiñeira warned, in statements to the program “This morning” from Rivadavia radio.
Source: Ambito
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