Friday , January 22 2021

The Indec will release inflation in November, which will see brakes by the economic recession

The Indec will broadcast the last inflation index of 2018, which will be in November. This indicator, as expected according to private estimates, will be marked A clear slowdown for September and October, Which represented the highest inflationary data of the Macri period. In this low, according to economists, the new monetary program of the central bank, which severely limits the amount of peso cycles, and the economic recession.

With the CPI for November, price increases in the first 11 months of the year will exceed 42% and it is expected that December's data will be about 45%, the highest since 1991. This will be a serious challenge for the government, which Aspires that in 2019 inflation is 23%, And even announced that he expects that this is the number that is negotiating the next wage wage.

Estimates from private consultants speak of a The November inflation rate was between 2.5 and 2.9%. According to the statistics of the Institute of Labor Statistics (IET), the cost of living of unionized employees increased by 2.9% in the same month, and reached an increase of 47.2% in the last 12 months.

Inflation indicated a slowdown compared to the rise in prices of the previous months, when it stood at 6%. On the other hand, the Orlando Center for Economic Studies calculated that November inflation was 2.5% per month. He noted that the items with the highest prevalence were "food and beverages, along with various goods", with a 2.5% and 5.8% adjustment, respectively.

President of the Central Bank, Guido Sandleris, said this week at the International Conference of the Economy that inflation "Still high, much remains to be done, But I think we're moving in the right direction. "

He added that "most countries in the region and the world have managed to live with low inflation." And he thought that "there is nothing in Argentina that
To determine that we can not live with single-digit inflation. It's not a concept from one day to the next"

Analysts believe that this slowdown in prices in November is affected, in addition to the sharp increases recorded in previous months, in the short currency of the monetary authority, which is cooling the economy at high interest rates.

But beyond the brakes on this partial inflation, the government could face a new acceleration in December. Unions reopened unions, plus the collection of the second half of the bonus and the consumption of holidays can re-warm prices.

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