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ECONOMY | 29-04-2024 11:24

Argentina’s monthly CPI to fall below 10% in April, Milei says

Monthly inflation in Argentina could fall below 10% in April, President Javier Milei said Sunday in a phone interview.

Monthly inflation in Argentina could fall below 10 percent in April, a sign that the government’s policies are working, President Javier Milei said Sunday in a phone interview with LN+. 

“Wages are already starting to beat inflation,” Milei said. “The fight against inflation is yielding results.”

Argentina’s monthly inflation slowed more than expected in March, cooling for the third consecutive time as Milei’s austerity policies affect consumer spending. Consumer prices rose 11 percent from February to March, less than economists expectations for 12.1 percent. From a year ago, inflation accelerated to 287.9 percent, the highest level since the country exited hyperinflation in the early 1990s.

Milei said that in the last two weeks there have been signs of deflation in food and beverages and highlighted that the benchmark interest rate has dropped to 60 percent from 133 percent when he took office. 

“It is already becoming clear that Argentina is doing much better,” he said.

Argentina’s central bank lowered rates to 60 percent from 70 percent on Thursday, the fourth rate cut since Milei took office in December.

Milei also said that government debt payments to state power wholesaler Cammesa will start in June, thanks to a “financial surplus.” The government offered to pay debts owed to gas production and electricity generation companies with a mix of peso-denominated bonds.

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by Manuela Tobias, Bloomberg

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