Argentina: Inflation is expected to reach 90.2% in 2022

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An Argentine central bank survey put inflation at 90.2% for 2022, a jump of 14.2 percentage points from the previous forecast.

Inflation for 2022 has been estimated at 90.2% by analysts, according to the monthly survey carried out by the Central Bank, the results of which were released this Friday. The Central Bank’s market expectations survey, conducted in July, shows a jump of 14.2 percentage points from the previous forecast.

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July was marked by a sharp increase in prices, stimulated by a rebound in the exchange rate after the surprise resignation of Economy Minister Martín Guzmán, replaced by Silvina Batakis, who remained in office for 24 days before Sergio Massa was appointed. instead in August. 3. Upon assuming office, Sergio Massa promised to make the fight against inflation one of his priorities, defining it as “the greatest factory of poverty”, a scourge that affects 37% of the 47 million inhabitants of the South American country .

In the Central Bank survey, analysts forecast inflation of 76.6% for 2023, 12 points higher than the estimate in June, and 60% for 2024, or 9.8 points higher than expected the previous month. Argentina has one of the highest inflation rates in the world, with 36.2% in the first half of 2022. In 2021 it had stood at 50.9%.

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budget deficit

Sergio Massa promised this Wednesday to meet the objective of reducing the budget deficit to 2.5% of the gross domestic product (GDP) agreed with the International Monetary Fund (IMF). Argentina must reduce the deficit of public finances from 3% of GDP in 2021, to 2.5% in 2022, 1.9% in 2023 and 0.9% in 2024, a difficult task in a context of growing social demands for the deterioration of purchasing power due to runaway inflation.

Sergio Massa also said that the government would abandon the use of the monetary issue to cover the deficit of public finances, a mechanism that weakens the peso and fuels inflation.

Author: J.Br. with AFP
Source: BFM TV

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