The economist, former official of the government of Carlos Menem and Fernando De la Rúa, highlighted that in the first months of the presidency of Javier Milei “all prices have been released”which “is something he always wanted private sector” and recognized that he also “it is necessary for a normally well-functioning economy.”
However, he criticized the companies that went too far in raising prices. “It cannot be that companies take advantage of that to hit to exaggerated prices“, he questioned in dialogue with TN.
Next, the former Alliance minister pointed out that “in many cases the companies said ‘well, the dollar is not at 880, it is at 1200 or 1300’ and prices increased at that dollar price level“. For this reason, he said that the private sector “You have to collaborate more” if you want “that the economy works well, openly, with freedom in all markets, without the State intervening.”
Cavallo clarified that his proposal does not imply “a price agreement”, which, he said, “the only thing they do is repress inflation.” “I say that Milei and the Minister of Economy have to ensure that the private sector, the price settersgasoline, food, medicine, they have to collaborate so that the government can lower inflation without causing so much recession,” he stressed.
“It seems outrageous to me that the prices of medicines have increased,” said the former Minister of Economy.
Cavallo calculated inflation of 10.1% in February
Days ago, Cavallo indicated 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”.
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”.
Source: Ambito
