Analysts assure that it will be very difficult to see a new decline in inflation in June, as a result of the rate increases and the rise in food and beverages. What did the President say?
President Javier Milei He was optimistic for the second part of the year. In television statements, he assured that inflation will continue to fall, denied that the IMF is asking for a devaluation and once again insisted that the dollar is not behind, but admitted that there will be a brake on the deceleration of the CPI.
“We are eliminating inflation”, stated the president. However, warned that in June there will be a pause “because of politics,” in reference to the opposition to the Bases law and the fiscal package and the half-sanction of a new retirement mobility formula. “Although its downward trend will continue later,” he assured.
However, and having said the above, the head of state admitted that in June there will not be a zero deficit and in addition, it will come with a rise in inflation, as expected by the city’s main consulting firms.
inflation supermarkets wholesale prices consumption
Reuters
In his interview with TN The President announced that “inflation is going to pause its decline in June”, a month in which he also announced that there will be no zero deficit. According to him, the increase in the CPI in relation to the month of May will be for “pay for what the politicians did in the Congress chambers with the delay in the approval of the Bases law“.
Along the same lines, analysts affirm that it will be very complicated that in June a new decrease in inflation may be seen, as a consequence of the rate increases and the increase in food and beverages. Are waiting a variation of between 5% and 6% due to the resumption of increases in electricity and gas rates postponed during the previous month, added to signs of acceleration in food, according to the consulting firm EcoGo.
And the President’s client, the Minister of Economy, Luis Caputo, decided to resume the increases in electricity and gas rates in June, based on a reduction in subsidies focused on middle and low-income sectors. In this context, The consulting firms estimate that the impact on the CPI will be between 1 and 2 percentage points. To this will be added an increase in fuel of 4% on average and the increase in the subway.
Javier Milei on rates
Regarding the increase in rates, the anarcho-capitalist denied that they are high. “The rates when you look at the comparisons they are low. The problem is that salaries are low, because for 20 years consumption was stimulated and savings were punished,” he said.
Finally, Milei commented that Salaries are going to be better “as we begin to growand we are doing a lot for that.”
Source: Ambito
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