President Javier Milei, in journalistic statements, had anticipated that if December inflation fell to 2.5%, he would reduce the crawling peg from 2 to 1%. However, the intention now would be to take this measure if, as expected, the cost of living is below 3%.
The Government contemplates reducing the pace of devaluation of the official exchange rate (crawling peg) from 2% to 1% monthly in light of the favorable result that December inflation will give. According to official sources, Scope.
The president Javier Mileiin journalistic statements, had indicated that its intention was to reduce the adjustment of the official dollar if the consumer price index for December fell to 2.5%.
According to the latest reports, the cost of living data, which will be known this Tuesday at 4 p.m., would show a result a couple of tenths of a point higher – it is speculated that it would be around 2.7 / 2.8% -.
It is in any case a “very good number” They say in government media, considering that the end of the year is usually a complicated time from an inflationary point of view.
This information plus the perspective of a also low variation in the wholesale price index (an indicator of future retail inflation, as highlighted by the president himself) are the elements that the Government takes into account to speed up the decline in the crawl.
If the modification is made to the exchange rate scheme, it will surely accentuate the controversy around the level of the exchange rate. In this regard, many economists point out that the peso is appreciated and warn that the situation has worsened due to the strengthening of the dollar that followed the triumph of donald trump and that has resulted in the devaluation of the currencies of the main countries with which Argentina trades.
From the Government It is completely ruled out that the peso is appreciated and they consider it necessary to reduce the rate of devaluation of the exchange rate to consolidate disinflation..
Source: Ambito
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