The minister spoke of a radical reduction in the CPI for supermarkets and the countryside. They also discussed the reduction in consumption and the release of withholding taxes.
The Minister of Economy Luis Caputo told, first to the representatives of the Liaison Committee and then to the supermarkets that Before the end of the year, monthly inflation will reach 0% or there may even be “deflation”. This was confirmed by sources who participated in the meetings held by the head of the Treasury this Tuesday. Skepticism among businessmen, concern about the fall in consumption and calls for exchange rate unification and withholdings.
Although it is still above 4% monthly according to the latest INDEC data, The government is betting on a sharp drop in inflation this year. Caputo himself conveyed this message to the businessmen with whom he held meetings. In this line, the plan foresees continuing with the adjustment of public spending and a strong contraction of the monetary base.
On Tuesday afternoon, the Minister of Economy received representatives of the large supermarket chains. Two sources who participated in that meeting told Ambit that the head of the Treasury Palace predicted that the inter-monthly inflation will reach 0% before the end of the year and even ventured that “there may be deflation”.
All this, while food prices accelerated in the first days of July and according to the presentation made by the vice president of the Central Bank to investors in the United States, Relative price adjustments remain, especially with regard to rates, fuel, and prepaid medical plans.
At the same meeting, Supermarkets have expressed concern about the drop in consumption. The latest report received by the major chains indicates a year-on-year drop of 18% in the first fifteen days of July.Furthermore, the expectation is that, given the high comparison base, the decline will be even sharper in the months remaining until the end of the year.
The reconstruction that Ámbito was able to do was also validated by the president of the Argentine Rural Confederations, Carlos Castagnini, who in an interview with Radio 10 confirmed that “Caputo said that we will have zero inflation before the end of the year.”
Castagnini participated along with the rest of the entities in the meeting that the minister had with the Liaison Committee. At that meeting, Rural leaders called for the lifting of restrictions and the removal of withholdings. Two issues that will obviously have to wait. According to sources from the Rural Society, The Minister of Economy sought to lower expectations regarding the announcements expected by President Javier Milei this Sunday.
Source: Ambito
