Former Economy Minister Domingo Cavallo, however, questioned companies for applying “exaggerated increases” in prices, with their consequent impact on inflation.
The former Minister of Economy Sunday Cavallo questioned the companies for applying “exaggerated increases” of prices, and warned that this had a full impact on inflation. He also asserted that The Government managed to reduce the deficit but with the correlation of the recession. Refering to inflation said that in April is going down to single digits.
The economist commented that, with this Government, “all prices have been releasedsomething that the private sector always wanted and that is necessary for an economy to function normally.
“But It cannot be that companies take advantage of that. to hit the exaggerated prices,” Cavallo complained, in statements to the press. In his opinion, “in many cases the companies said ‘Well, the dollar is not at $880, it is at $1,200 or $1,300’ and prices increased at that level“.
For this reason, he considered that The private sector “has to collaborate more” if it wants the economy to “work well, openwith freedom in all markets, without the State intervening.” Avallo predicted that February inflation will be “closer to 10% than 15%.”
Inflation: what is going to happen, according to Cavallo
“I expect a digit in April and I still think it will be that month. March is a mystery because the adjustment of electricity rates is going to have a lot of impact that the increase has accrued since February. It will be fully reflected this month,” Cavallo told The Nation +.
As for whether this plan is sustainable, he answered yes. due to fiscal adjustment and lower monetary emission but warned that there is a disinflation effect due to the great recession and considered that “The Government is going to have to do something to mitigate it,” and he advised “they are going to have to encourage themselves to lower taxes.”
On this point he named Country tax and withholdingsand he said that with those “two taxes were a wrong way to close the fiscal deficit”. “If they manage to close the primary deficit, it is already a very important achievement,” however, he asserted.
“The dialogue with the Governors is very important, not so much because of the substantive measures because they will take time and they will be able to be done when the Government achieves stability, but because The provinces have greatly disbanded in public spending“, Cavallo said about the May Pact.
Source: Ambito
