Thursday , January 21 2021

Indec will spread November inflation, which will slow down the economic recession



Indec will publish this latest inflation index in 2018, which corresponds to November. This indicator, as expected by private estimates, will mark a clear deceleration compared to September and October, which represented the highest inflation data from the Macri era. In this low, according to economists, the new monetary system in the central bank, which strongly limits the amount of circulating pesos and the economic recession.

With the consumer price index for November, the price increase for the first 11 months of the year will exceed 42% and it is expected that by the end of December it will end by about 45%, the highest since 1991. This will be a difficult challenge for the government as strives for inflation in 2019 to be 23%, and even let him know that this is the figure negotiated in the next salary parity.

Estimates from private consultants talk about a Inflation rate in November between 2.5 and 2.9%. According to the Danish Institute of Labor Inspectorate (IET), living costs for skilled workers rose 2.9% that month and reached an increase of 47.2% in the last 12 months.

Inflation showed a slowdown in relation to the rise in prices in the previous months, when it was around 6%. On the other hand, the center of economic studies of Orlando Ferreres estimated that in November November was 2.5% monthly. He pointed out that the goods with the highest incidence were "Food and beverages together with different goods" with an adjustment of 2.5% and 5.8%, respectively.

President of Central Bank Guido Sandleris said this week at the International Conference of the Economy that inflation "still high, much left to be done, but I think we are moving in the right direction. "

He added in the sense that "most countries in the region and the world managed to live with low inflation". And he meant that "there is nothing in Argentina that
Decide that we can not live with single-digit inflation. It is not achieved from one day to the next".

Analysts believe that this deceleration in prices in November is affected. In addition, there were no specific increases as in the previous months in the monetary currency's hard currency, which cooled the economy with high interest rates.

But in addition to this partial inflation brake, the government in December could survive a new resumption. Trade unions reopened unions, plus the collection of the second half of the bonus and spending on holidays could reheat prices.


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