There was an air of good news in the official offices. To the inflation data Added to this was the good reaction of the markets to the lowering of the interest rate and the confirmation that there will also be a financial surplus in February.
“No one expected that we would achieve a disinflation process of these characteristics, which today is much deeper than the one that occurred during convertibility,” the president said Javier Milei in radio statements.
Although the 13.2% monthly increase that the consumer price index showed in February is still a very high number, a slowdown is observed compared to the peak of 25.5% registered in December 2023 and the 20.6% % corresponding to last January.
Furthermore, private analysts point out that If the specific effect of the rearrangement of two items is discounted – rates and prepaid medicine that together added 1.8 points to the February index – and the statistical drag – 4.2 points -, inflation for the month that has just concluded is reduced at 7.2%.
The prepaid medicine had last February an increase of 25.1% and shows an accumulated variation in the year of 69.3%.
Even greater was the adjustment that some of the most relevant rates had. Last month the railway ticket (one of the most delayed prices) had an increase of 114.6%, while the automotive transportation service rose 49.4%. Regarding energy, electricity experienced a recomposition of 75.2
March is a complicated month for various seasonal reasons – start of classes, change of season – to which will be added the rearrangement of relative prices. However, An element that plays in favor of the slowdown in inflation is that the statistical drag will continue to be lowerthat is, the inertia towards the rise in prices that comes from last month.
According to the consulting firm’s data Econometric, The statistical drag that December left for January was 10.1%, the one that February received was 4.2% and 2.8% is what remains from last month to the present.
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Surplus
In the Casa Rosada they point out that this result is a consequence of “an adjustment that is unprecedented, not only in Argentina, but in the world”. About, A senior government source told Ámbito that, as in January, last month the Treasury’s financial result was positive.
For his part, the Minister of Economy, Luis Caputo in Amchan stated that: “The quasi-fiscal deficit was reduced by almost five points. The monetary base had a contraction of 38% since December. At the same time, more than 9,000 million were purchased in the Central Bank, so there was a strong recomposition of the balance sheet.”
Another piece of information that stands out as positive is that today the Central Bank bought 90 million dollars despite the fact that the monetary authority reduced the interest rate.
Source: Ambito
