The President stated that the real drop in prices “is very good.” And he criticized economists who question it.
The president Javier Milei questioned the economists who speak against deflation and maintained that “it is a return of income to the rest of the population against the State”. According to INDEC, the price index (CPI) for September was 3.5%.
He libertarian economist denied this Tuesday that both the inflation like the deflation processes equally harmful to a economy. On the contrary, he defended a real fall in prices by ensuring that “it’s very nice”.
During his dissertation at Monetary and Banking Conferences 2024 of the Central Bank, Milei reaffirmed the economic direction of his government, highlighted the role of the Minister of Economy, Luis Caputo, and reiterated his commitment with fiscal balance. “It is an achievement that we have not abandoned nor will we abandon”he advanced.
Javier Milei and his defense of deflation: “It is a return of income”
In that sense, defended having applied an immediate adjustment about the accountstace state and the paid liabilities of the BCRA. And he questioned those who accuse him of having passed on the cost to society through the devaluation December, when the exchange rate jumped 118% and inflation skyrocketed.
“I am amused by the comments of analysts saying “Milei devalued”. If the gap was 200% and reserves were negative in almost US$12 billion I did not devalue,” he denied and added: “The devaluation was there. It was a matter of being honest.”
In December, inflation reached 25%, the peak of price increases during President Obama’s term. Milei. Since then, it began a fall until breaking the 4% floor in September. For October, the deceleration of the monthly index is projected to continue, which could accelerate again at the end of the year.
However, the head of state anticipated the near future by anticipating a possible deflation, a scenario that among economists is usually pointed out as a consequence of a strong recession. For Milei, On the contrary, it would be “a return of income to the rest of the population against the State.”
Source: Ambito
