In the coming months, Sergio Massa, Argentina’s Economy Minister predicted a spike in inflation.
This is attributed to the recent depreciation of the Argentine peso, which he claims was influenced by the International Monetary Fund (IMF).
Speaking from Washington, D.C., Massa mentioned that the IMF’s stipulation for Argentina to adjust its currency has a definite inflationary effect.
The repercussions of the 22.5% depreciation by Argentina’s Central Bank on August 14th will become evident post-August.
He emphasized, “The IMF’s push for this currency adjustment to meet program goals results in inflation and affects citizens financially. We aim to mitigate this with measures we’ll announce soon.”
On August 23rd, Massa is set to meet with the IMF’s Managing Director, Kristalina Georgieva, regarding the approval of the fifth and sixth reviews of the Extended Fund Facility (EFF) program with Argentina and the disbursement of US$7.5 billion.
Inflation remains a significant challenge for Argentina’s economy, especially as the new administration will take office on December 10th.
Year-over-year, Argentina saw a price increase of 113.4%, and as of July, it recorded a 60.2% rise, based on official figures.