Argentina's Deputy Economy Minister Gabriel Rubinstein has admitted that the country is at "risk of hyperinflation."
The comments, made during an interview with a local radio station, highlight the fears that are gripped Argentina's economic leadership as runaway price hikes continue to eat away at purchasing power. The most recent Central Bank survey of analysts and economists forecast an annual inflation rate of close to 100 percent for 2022.
"There is a risk of hyperinflation in Argentina, we are having six or seven points of inflation per month. That's why we have to fight day-by-day on all fronts," Rubinstein told Radio Rivadavia.
"We are working to lower the fiscal deficit and inflation," he assured, arguing that "most countries can have a fiscal deficit, but this is not the case of Argentina because it cannot finance itself."
Rubinstein went on to stress the importance of "fiscal discipline" and that Argentina had to approach the issue differently from other nations due to its economic circumstances.
"We have a more controlled deficit. And I would prefer the deficit to be zero. We have a 1.9 [percent] primary deficit forecast for next year, which is much better than having 2.5, three or four [percent]," he said.
Rubinstein argued that the global economic outlook "does not merit having super low inflation," but stressed that is should not deliver "100 percent inflation."
He said staff at the Economy Ministry are doing everything possible to improve the economic outlook.
"The government's economic team is working exhaustively on all fronts, like the doctors at the time of the Covid-19 pandemic," he declared.