The Mauricio Macri government has again been forced to step away from its 2018 inflation target after days of financial turbulence that saw the peso plummet to a record low against the dollar.
Inflation in the month of April totalled 2.7 percent, bringing total inflation for 2018 to 9.6 percent, the INDEC statistic bureau reported.
“The goal for inflation is not a forecast, rather it’s a guide for economic policy”, Cabinet Chief Marcos Peña said Tuesday. “We’re working to reduce the impact” of the weakened peso, he added.
Treasurer Nicolás Dujovne took a similar tone on Monday, saying that in 2018 “Argentina will have more inflation and less (economic) growth” than expected.
In December, the government lowered its inflation forecast from 10 to 15 percent.
In light of its ongoing roll-back of utilities and public transport subsidies, the government long ago conceded that inflation would be higher in the first part of the year while insisting it would start to drop from May.