Ahead of the release of July’s inflation figures, Argentina’s government anticipates a more challenging outlook for August, with predictions of a double-digit monthly increase, as the “TN” television channel reported.
This less-than-optimistic outlook stems from the significant devaluation of the Argentine peso following the country’s primary general elections held in October.
Argentina’s Central Bank declared a currency depreciation of over 20% earlier in the week.
This change will likely lead to a revaluation of numerous products, especially in the food sector, an area the government has been aiming to regulate using the “Fair Prices” initiative.
In response to these inflationary pressures, the Argentine administration plans to engage in direct negotiations with particular sectors of the economy.
The goal is to introduce tax reductions or provide new credit lines, as mentioned by “TN”.
For July, a study by Argentina’s Central Bank indicated that the nation’s economic sector is expecting a 7% rise in inflation.