In a recent report by Argentina’s National Institute of Statistics and Census (Indec), it was revealed that wholesale prices increased by a mere 2% last month. This news has sent ripples of celebration throughout the country, with President Javier Milei hailing the achievement and commending Economy Minister Luis Toto Caputo for his efforts in curbing inflation.
The Wholesale Domestic Price Index (IPIM) has seen a significant growth of 61.5% this year, marking an interannual increase of 197.3%. The latest data indicates a 2.3% rise in household items, slightly offset by a 1.4% decrease in imported products, aligning with the previous month’s 2.1% increase. Additionally, the Wholesale Basic Domestic Prices Index (IPIB) rose by 1.7%, driven by a 1.9% surge in household items and a 1.3% decline in imported products. The Basic Producer Price Index (IPP) also climbed by 1.9%, powered by a 2.2% spike in primary products and a 1.8% increase in manufactured goods and electric energy.
Notably, the construction sector experienced a notable jump of 4.9% from the previous month and a staggering 169.6% increase year-on-year. This surge can be attributed to rising costs in materials (1.7%), labor (8.2%), and general expenses (5.8%).
Following criticism from former President Cristina Fernández de Kirchner, Milei took to social media to assert that his government is successfully “taming” inflation, attributing the accomplishments to a different approach than past administrations. He emphasized the importance of controlling inflation without resorting to extreme measures like hyperinflation, default, expropriation, or fixed currency rates.
On the flip side, Caputo lashed out at the opposition, labeling them as “delinquents and donkeys” and arguing against their proposed strategies that may disrupt the fiscal balance crucial for maintaining macroeconomic stability.
As the nation makes strides in stabilizing its economy and controlling inflation, it becomes evident that the efforts of the government are yielding positive results. It is essential to continue on this path of financial discipline and prudent economic policies to ensure sustained growth and prosperity for Argentina in the long term.
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