Regarding the plan to lower inflation, the economist added: “Attacking inflationary inertia and seeking a reasonable drop in business margins, we will be able to bring real inflation closer to “theoretical” (monetary impulse of fiscal origin). And if Congress improved the Budget, eliminating the primary fiscal deficit, it would give us a great tool for us to return to normal inflation, of the order of 10% per year, in less time than almost everyone believes”he concluded.
What Economy said about inflation
Massa explained the macroeconomic variables projected by the Government of a 2% increase in the growth of the Gross Domestic Product (GDP), a deficit of 1.9% and an average inflation of 60%.
The minister mentioned the role of companies in relation to inflation. “Argentina has some very concentrated sectors of the economy, which end up having an almost dramatic impact on value chains in terms of inflation,” Massa said.
He then asked Parliament for help to get involved in showing “That there are situations in the chains of diffused inputs that end up generating situations of price overflow, which we see in the gondolas but that start much earlier in sectors that we do not look at.” Although, the minister avoided giving names, In official offices they have been analyzing companies linked to the production of aluminum, chemicals, among other.
A while later, too the Vice Minister of Economy, Gabriel Rubinstein referred to business profits: “Now it is difficult to say that everything is behind at the same time, but there is something that is ahead that is like the business gross margins. We have to find a way to be more efficient and for business margins to return to normal.”
These statements by the economic team arise from an analysis that was carried out regarding the profitability of certain business sectors. In agreementto these jobs most companies have improved and increased their profitability in recent years, excluding the year of the pandemic.
Source: Ambito
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