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Cavallo assured that inflation in February was around 10% and recommended accelerating the crawling peg

Cavallo assured that inflation in February was around 10% and recommended accelerating the crawling peg

The former minister assures that, according to his measurements based on online prices, the average inflation rate for the month was 10.1%.

Mariano Fuchila

Sunday Cavalloformer Minister of Economy during the governments of Carlos Menem and Fernando De la Ruaindicated that the February inflation rate was “closer to 10% monthly than the 15% indicated by many consulting firms.” In addition, he assured that the fall in said rate “offers the opportunity for increase the pace of the crawl”.

According to what was published on his blog, the renowned economist stated that the price of food and other goods had increased excessively in January. He also referred to goods that, according to him, are usually adjusted according to the price of the parallel dollar, such as electronic, They had to face the drop in the price of dollars “pseudo free.”

He also referred to the rise in gas and electricity rates. He stated that the delay in adjusting these regulated prices helped the inflation rate in February to be lower than many analysts anticipated.

Domingo Cavallo Former Minister of Foreign Affairs of the Argentine Nation

Sunday Cavallo.

Mariano Fuchila

February inflation: Domingo Cavallo’s measurement

The former minister assures that, according to his measurements based on online prices, the average inflation rate for the monthwas located in a 10.1%. Furthermore, he indicated that the deceleration was strong in the last two weeks of February.

In the text published on his blog, the economist also maintains that, despite the strong deceleration, the real exchange ratemeasured by comparison between a basket of goods in Argentina and the United States, also “went down a lot”.

Domingo Cavallo Former Minister of Foreign Affairs of the Argentine Nation

Mariano Fuchila

He also aimed to indicate the price evolution of different products. “In the case of the mealthe relationship between cost in Argentina and in the United States It is about 60%, not far from the historical average ratio. This relationship is reasonable considering that Argentina is a net exporter of food,” he assured.

Regarding fuels, he stated that the gasoline basket value in Argentina it is practically the same as in the United States.

At the other extreme, the case of the Electronic products which, as he indicated, “until December prices in the United States more than doubled and now they are just 40% higher than those measured at the official exchange rate. And measured at the parallel exchange rate, they are at the level of prices in the United States.”

Source: Ambito

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