The president anticipated this through his X account, after the October CPI slowed to 2.7%, as reported by INDEC.
The president Javier Milei announced this Tuesday that The Central Bank will reduce the “crawling peg” of the official dollar, from 2% to 1% monthly, in case inflation remains downward in the next two months. The president anticipated it through his account in X, after the October CPI will decelerate 2.7%, as reported by INDEC.
“If we subtract the induced inflation (preset devaluation + international inflation), monetary inflation has been traveling at 0.2% monthly, that is, 2.4% annually. If this inflation is confirmed for two more months, the monthly devaluation will be lowered to 1%”, posted the Head of State.
Milei’s statements come after the vice president of the Central Bank, Vladimir Werning, admitted this Tuesday morning that, As monthly inflation slows, the role of the crawling peg began to change and went from being an anchor to become an inertial factor. This means that instead of containing price increases, it now contributes to inflationary inertia.
Since the slowdown in inflation, the market has been speculating for weeks about when the Central Bank could adjust the crawl to a level less than 2%. “That crawl was an anchor. Today, as inflationary expectations converge towards it, “It acts more as a factor of inertia,” said Werning. at the Capital Market and Corporate Finance Symposium of the Argentine Institute of Finance Executives (IAEF).
“Very bad day for the baboons”
In a subsequent post and on his own message, President Milei added: “Very bad day for the baboons.” Milei published the inflation data that Indec released today and which was 2.7% monthly, the lowest value in the last three years. Indec also pointed out that the accumulated inflation in the year was 107% and the interannual inflation reached 193%.
On the other hand, the President has been pointing out in his public interventions that inflation will continue to fall, that the economy is recovering and that the recession is over. The Minister of Economy, Luis Caputo, highlighted today the drop in inflation and stated that “it is a battle that has been won.”
“There was talk that the disinflation process was going to be very slow and that then we were going to have to devalue in February or March,” Caputo said when speaking at the Buenos Aires Stock Exchange, at the annual Congress of the FIEL Foundation. He pointed out that “after (they said) that inflation was not going to be able to go below a certain level, that level was easily broken” and he remarked: “Now we have practically converged to the crawl level plus international inflation.” “It is a battle that has been won,” he remarked.
Source: Ambito
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