Pricing: Advisors are already predicting inflation of 90% for the full year

Argentines face the perspective of a Inflation of 90% by the end of the year after the departure of Economy Minister Martín Guzmán caused price increases overnight, while the Central Bank is under pressure to allow weight depreciates more quickly.

that will bethe rate of increase dand prices faster since hyperinflation three decades ago and the highest rate in the world outside Venezuela and Sudan, according to the forecasts of the International Monetary Fund.

Guzmán’s dramatic departure this month led to many companies will raise prices. Some consumers rushed to the shops trying to do it stock up before a weight devaluation and price increases.

June inflation data, which will be released this Thursday they are overshadowed by the July price hikes and beyond. Prices rose 64% in June from the previous year, according to analysts interviewed by Bloombergcompared to 61% in May.

Buenos Aires consultants, such as EconViews, FMyA, Alberdi Partners and EcoGo, predicted inflation of 90% by the end of 2022. One of them, FIEL, predicts a 92% rise in consumer prices, while other analysts, such as EcoLatina and Empiria Consultores, expect inflation to close the year at 85%.

Before Guzman’s departureeconomists interviewed by the Central Bank expected inflation of 76% At the end of the year. Printing money to finance public spending and rising international commodity prices also contributed to the rampant rise in prices.

Looking ahead, analysts see the government without tools or a credible strategy to cool down inflation. Some expect the Central Bank to accelerate its daily devaluations of the peso, which would allow you to spend less money defending mobile parity, although this would put even more pressure on prices.

Powerful Argentine trade unions could renegotiate wage increases to compensate for the price increases as well.

The projections, one by one

Here’s what the economists say:

Marcos Buscaglia, of Alberdi Partners

Forecast: 90%

• “The final number will depend on whether the government can delay a devaluation of the peso until 2023 or less. Otherwise, inflation could exceed 100% “.

Andres Borenstein, of EconViews

Forecast: 90%

• The government “clearly has to devalue at a faster rate than they have done. They are now at an annualized rate of over 70% and this will have to continue “

Federico Moll, of EcoLat

Forecast: 85%

• After Guzmán’s resignation, “expectations have changed and the way some durable goods are priced has changed significantly”

• “This leaves you with a complex brake for next year, it will be difficult to think of a strong slowdown. We do not see inflation below 70% for 2023 “

Juan Paolicchi, of Empiria Consultants

Forecast: 85%

• “The combination of tighter bond restrictions at the end of June, coupled with uncertainty about access to official dollars, forced us to revise our projections.”

Federico Furiase, Anker Latin America

Forecast: 77%

• His estimate “is probably a dish”

• “Traditional anchors do not work: the official dollar cannot continue to lag because net reserves are not enough, rates must start to rise to lower subsidies and the deficit, and wages are making up the ground lost by the acceleration of inflation

Other forecasts:

Faust Spotorno, OJF and Associates: 85%

Marina Dal Poggettofrom EcoGo: 90%

Fernando Marul, of FMyA: 90%

Daniel Artan, FAITHFUL: 92%

NEITHER