Inflation is one of the most significant problems in the Argentine economy and its implications hit those who have less purchasing power. In this sense, the economic analyst, Damian Di Pace spoke with Channel E and warned which These are the government’s strategies to stop the devaluation of the peso.
According to the analyst: “Inflation data for June will be released on Thursday”, “inflation that the city gave 7.1%, the workers gave 7.4%, the consultants 6.8 and 7, 2% that would be the range.” “Showing a slowdown in inflation is very relevant.”
Regarding the question of what Sergio Massa needs for the PASO, Di Pace explained that it is necessary, “that there is a containment effect that does not make it jump this slowdown process that it is being able to show”.
contain the rise in food prices
The interviewee asserted that “The most worrying thing is the food sector“. And he added: “City showed a slowdown of 5.8%, which for Sergio Massa is the most worrying, because all Argentines have to consume them yes or yes, there is no way to avoid it”.
“An agreement was reached with the businessmen to increase the day after the STEP, there is a cap of 5% that the big supermarket chains they will be able to increase it the Monday following the Primary and Mandatory elections,” Di Pace asserted.
The problem of the delay of the wholesale dollar
Another problem, according to the analyst is the external constraint. “Should I sell a good and what kind of dollar do I replace it? and the other is the exchange gap that made a significant jump in the month of May and ended up going to prices,” he said.
“The other strategy is to contain the official wholesale exchange rate, the official dollar rose 7.1%. Sergio Massa is raising it in line with inflation, he doesn’t want it to exceed inflation,” said the interviewee.
Segun Di Pace: “EThis is the big problem you have with the IMF, who tells him: “I’m going to make the disbursements for you, but you have to devalue the peso against the dollar above inflation, because we cannot allow an exchange delay, we cannot give the dollars to the importers at a price that indeed everyone wants.”
The New Tax Dollar
The economic analyst has in the pipeline the launch of a “tax dollar“, this “would mean that for certain products and categories there would be a kind of over-rate, such as the tourist dollar. A surtax for certain imported imports,” he reported.
In this sense, the great strategy of Sergio Massa “is to close an agreement with the International Monetary Fund, continue to intervene in the bond market and also do it with yuan in the parallel market”DiPace asserted. He then added that this serves “so that the blue is not triggered and the gap is shortened and thus be able to offer large food chains and supermarkets to enter the exchange market.”