The Government maintained that January inflation "confirms deceleration path"

He National Institute of Statistics and Censuses (Indec) reported this Wednesday that the January inflation It stood at 20.6%. After knowing this data, the Government indicated that the number “confirms the path of deceleration in nominal value that has been observed since mid-December, at a greater speed than expected by the market.”

Through a statement, the Ministry of Economy recalled that the estimates of the Survey of Market Expectations (REM) for January placed it at 25%, in the calculation made in December, and 21.9% in the estimate made at the end of the last month.

The inflation figure for the first month of the year “still has a high statistical drag from December,” when it reached 25.5%, “derived from the inherited monetary overhang (surplus) and the honesty of relative prices in the first week of the year.” current administration.”

January inflation was 20.6% and year-on-year reached 254.2%

The transfer to prices of the December devaluation “was much smaller than the jump in the exchange rate in August of last year,” when the government of Alberto Fernandez validated a 27% devaluation after the PASO was held.

“While at that time the improvement in the real exchange rate was consumed in less than two months, between December and January inflation was 51%, compared to a nominal increase in the reference exchange rate of 129%,” noted the release.

This occurred “despite the fact that, starting in December, other prices that were severely behind schedule were revealed, such as fuel or mass consumption products that were under controlled price schemes.”

Argentina had the highest inflation in the world in January

Now, the economic program “aims to sustain and deepen this disinflation scenario. The combination of the fiscal, monetary and exchange anchor, and the normalization of foreign trade, ensures a “decreasing trajectory” of prices.

Finally, the document noted that “macroeconomic stabilization, based on financial balance and honesty of relative prices, is a necessary condition for the Argentine economy to enter a virtuous path of real salary growth and generation of quality employment.”