Argentina's consumer price index (IPC) reached 160.9% in November in 12 months, rising 12.8% compared to October, the National Institute of Statistics and Country census (Indec).
The monthly increase shows an acceleration in relation to the 8.3% rate recorded between September and October. Considering just the 11 months of this year, inflation was 148.2%.
The most recent forecasts from private institutes, collected monthly by the Central Bank, indicate that inflation this year will be 185%, which, if confirmed, will be the highest rate since the hyperinflation of 1989-1990.
On Sunday (10), Javier Milei became the new president of Argentina, replacing Peronist Alberto Fernández.
This Tuesday (12), the new government's Economy Minister, Luis Caputo, announced a series of measures, such as the cancellation of tenders for public works, reduction of subsidies for energy and transport and exchange rate devaluation, with the dollar passing from about 400 to 800 pesos.
Caputo said that the Milei administration seeks to eliminate the fiscal deficit to reduce inflation. “If we continue as we are, we will inevitably move towards hyperinflation,” said the minister.
“The genesis of our problem has always been the fiscal deficit. Politically, we have always been deficit addicts. What we came to do is the opposite of what has always been done. We came to solve this problem at the root”, said Caputo.
The minister warned, however, that the measures will take time to take effect, and inflation may even worsen in the coming months.
“For a few months we will be worse than before, particularly in terms of inflation. I say this because, as the president says, it is better to tell an uncomfortable truth than a comfortable lie,” said Caputo. (With EFE Agency)
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