Economy Minister Martín Guzmán assured this Saturday that the government is “building the conditions” for a drop in the monthly inflation rate to occur and stressed how “fundamental” the accumulation of reserves is to achieve macroeconomic stability.
“We are building the conditions so that the monthly inflation rate continues to fall,” Guzmán said in a dialogue with AM 750 radio at the time he anticipated that May’s inflation will be lower than that registered in April.
According to Guzmán, Argentina is currently “traversing a path of very strong economic recovery with job creation” and that “it is solving very serious problems that were essential to do so so that we can continue on this path and also to be able to attack the problem of inflation”
In this sense, Guzmán highlighted the “complexity” of the world situation with the pandemic and the war between Russia and Ukraine, for which he argued that it is necessary to “do certain things that are what we are working on to attack this problem.”
“On the one hand there is an internal component and another one of inertia, due to the custom in the inflationary process that the economic dynamic itself gives persistence to the phenomenon and that is the first thing we have to break”, said the Minister.
To achieve this, the “most important thing is to have a consistent macro policy, which means that what we do from fiscal and monetary policy has to help the country gather reserves, dollars, because when they are lacking there is more inflation and the recovery,” he emphasized.
“That is fundamental and we make an absolute commitment to an economic program that among the objectives to which it aims is that and that allows us that in 2023 the economy continues to grow and generate employment and that expectations calm down and inflation reducing,” he said.
He also indicated that those who pay the social rate for electricity will have an annual increase of “21 and something percent” when the salary valuation coefficient was 40%; “so there is a reduction in the weight of tariffs on wages.”
The intermediate segment “that does not pay the social tariff but we consider that they do not have the economic capacity to face the full cost of the tariff”, the update of the coefficient shows 80% but an increase of 42.7% will be implemented “below the salaries “.
He added that “the segmentation will be implemented through a decree that determines that the enforcement authority is the Secretary of Energy,” an office that “will determine the specific criteria for segmentation.”