(Bloomberg) – Argentina’s monthly inflation rate could fall below 10% in April, a sign that government policies are working, President Javier Millay said in a phone interview with LN+ on Sunday. Ta.
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“Wages are already starting to outpace inflation,” Millais said. “The fight against inflation is paying off.”
Argentina’s monthly inflation rate slowed more than expected in March, the third straight slowdown as Prime Minister Millei’s austerity measures hit consumer spending. Consumer prices rose 11% from February to March, but this was lower than the 12.1% expected by economists. Inflation accelerated to 287.9% from a year ago, the highest level since the country emerged from hyperinflation in the early 1990s.
Read more: Argentina’s March monthly inflation rate is slower than expected
Millais said there had been signs of deflation in the food and drink industry over the past two weeks, highlighting that the benchmark interest rate had fallen to 60% from 133% when he took office.
“It’s already clear that Argentina is doing much better,” he said.
Argentina’s central bank on Thursday cut its policy rate from 70% to 60%, marking the fourth rate cut since Milay took office in December.
Millais also said that thanks to the “budget surplus”, government debt payments to state-run electricity wholesaler Kamsa would begin in June. The government proposed paying off debts owed to gas producers and power generation companies with a combination of peso-denominated bonds.
–With assistance from Alex Vasquez.
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