Javier Milei came out to celebrate the inflation rate for February, 13.2% according to the publication this Tuesday by the National Institute of Statistics and Censuses (INDEC).
He praised the Minister of Economy, Luis Caputo, and assured that the current "disinflation" is "deeper" than that registered with Convertibility in the early 90s. In addition, he explained why the February Consumer Price Index could be estimated as single digits: 7.2%.
"It is a number that after the disaster we have had to face is (a product of) the work of Minister Luis "Toto Caputo", it is a formidable job. What the Central Bank is doing is worthy of admiration," said the president in dialogue with radio
El Observador
.
On the other hand, the head of the Executive once again questioned the supermarket promotions that do not allow for a lower unit price of the product: "In the meeting that the Minister of Economy had with the companies, they had calculated an average dollar of $2,500 and they have not reduced prices and have started with promotions.
In turn, it was compared to the drop in inflation prior to Domingo Cavallo's convertibility in the early '90s.
"The price is falling but it cannot be expressed in the index. We are truly very satisfied with the achievements we are having. Nobody expected that we would achieve a disinflation process of these characteristics, which is
much deeper than what had occurred during the convertibility
," Milei stated.
On the other hand, the President analyzed: "We were experiencing hyperinflation, if I may excuse myself. In the first week of December, prices were at a speed of 3,700% annually, the second escalated to 7,500%, the wholesale inflation of December "It gave 54%, which annualized gives 17,000%,
we were going through hyperinflation
and, given the tough monetary policy we are exercising, it is what has prevented it."
Why Milei says that February inflation was 7.2%
The President reiterated that he sees current inflation in the single digits, although this time he dared to put a number on it: he explained why, for him, the Consumer Price Index for February could be calculated as 7.2%.
"We are
very satisfied
, the market consensus was around 16%, 17% and the data that was just published is 13.2%," he began to celebrate the Indec update.
And he added: "But if one considers the effects of the statistical drag, which are 4.2, and what is linked to increases in rates and prepaid payments, which are all at once, a product of the imbalances left by the previous government, which is 1.8% more, it means that we have to clean up 6 points and
we would have an inflation of one digit, 7.2%".
News in development