When asked if the exchange rate is behind, Melconian responded: “It is there, at the limit, where in the photo you have no risk. If in the movie the inflation rate does not collapse, and you want to continue at 2% monthly, you have a problem. “Let’s distinguish photo from film.”
“It was sold to the law as a regime pact, but The real regime change they have is to eliminate the fiscal deficit. There’s not even a need for this overfitting,” she added.
Melconian and the economic story
In statements with Radio Miter, The economist emphasized fiscal balance, one of the main premises of the ruling party. “You cannot lose that fiscal balance. That historically helps to avoid problems with the exchange rate, but if you don’t lower inflation in the end you will get into a problem. And it will depend on the trade surplus, on international prices , the elimination of the stocks, the elimination of the PAIS tax.
Along these lines, he pointed out that “it will depend much more on all that and much less about the competition of currencies, the elimination of the liabilities of the Central Bank and the whole story“.
When asked about inflation, Melconian spoke of the possible limit that the loss will have: “You can take care of yourself and you can run, there comes a time when the float is difficult to lower, you have to go to surgery. What is the float? 4% monthly? “It is the first time since this Government has been in office that the amount of money is greater than inflation.”
Inflation: food once again casts a shadow over the floor sought by the Government
In thesecond week of June, food prices average a monthly increase of 4.8%according to data from the consultancy Labor Capital and Growth (LCG) and, during that period, an increase of 1.5% was recorded compared to the previous seven days.
The data suggest that, taking into account the rate increases planned for this month by the Government, as is the case of electricity and gas, It will be more complicated if at the end of the month the Consumer Price Index (CPI) falls until it pierces its floor of 4.2%.
However, the economic team seems be aspiring to have a 2% monthly floorsomething that seems complicated given the delay in the price of public services, which generates repressed inflation.
Source: Ambito
