The Government recently celebrated the data of inflation December, ensuring that it reflects the success of the economic stabilization plan implemented during the last year. The Minister of Economy, Luis Caputo, highlighted that the Consumer Price Index (CPI) released by the National Institute of Statistics and Censuses (Indec) is the lowest for the month of December since 2018.
Furthermore, he stressed that the quarterly average is the lowest since September 2020, which represents a significant achievement in the fight against inflation. The economic stabilization plan, according to Caputo, has been fundamental to achieving these results. This plan includes a series of measures aimed at controlling inflation, promoting economic growth and improving the quality of life of citizens.
Among the measures implemented are the reduction of the fiscal deficit, the stabilization of the exchange rate and the implementation of restrictive monetary policies. Reducing the fiscal deficit has been one of the Government’s main priorities. To achieve this, cuts in public spending have been implemented and tax revenues have increased through tax reform.
These measures have made it possible to reduce the fiscal deficit and, consequently, reduce pressure on prices. The stabilization of the exchange rate has also been key to the success of the economic stabilization plan.
The Government has implemented a series of measures to control the volatility of the exchange rate and avoid abrupt devaluations that could generate inflation. Among these measures are intervention in the exchange market and the implementation of restrictive monetary policies.
Restrictive monetary policies have been another fundamental component of the economic stabilization plan. The Central Bank has increased interest rates and reduced the amount of money in circulation to control inflation.
Measures
These measures have made it possible to reduce aggregate demand and, consequently, reduce pressure on prices. Minister Caputo also highlighted the importance of cooperation between the public sector and the private sector to achieve these results.
According to Caputo, dialogue and collaboration between both sectors have been essential to implement the necessary measures and achieve the success of the economic stabilization plan. Despite the progress made, the Government recognizes that there is still much to do to consolidate economic stability and guarantee long-term sustainable growth.
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