The consumer price index (CPI) in Argentina closed the month of December with a 5.1% increase compared to November, which leaves the country with inflation of 94.8% in 2022 in the annual comparison, according to the National Institute of Statistics and Census (Indec).
In December, the advance was driven by the sectors of restaurants and hotels (+7.2%); alcoholic beverages and tobacco (+7.1%); domestic services (+5.9%); and transport (+5.8%) – due to the increase in fuel prices.
After the disclosure of inflation, the country’s central bank announced that it considers keeping the interest rate unchanged – at 75% – to “contribute to the gradual deceleration of inflation in the medium term, consolidating financial and exchange rate stability”, says the note.
The monetary authority also says that it ratifies its objectives of reducing the annual rate of inflation and “building a process that reestablishes confidence in the local currency as a store of value, preserving monetary and exchange rate stability”.
On Sunday (8), the country’s Minister of Economy, Sergio Massa, said that Argentina’s economy will grow “significantly” by more than 3% in 2023. The latest GDP (Gross Domestic Product) released by Indec pointed to growth of 0.8 % and November, and 5.9% in the third quarter of 2022.
“What expectations do I have for this year? First to grow more than three points, and it will be the third consecutive year of growth,” said Massa, who took office in mid-2022, to the Argentine newspaper Perfil.
Referring to 2022 economic growth, he said it will be above analyst expectations of 3.5% to 4%. “It will be well above 5%,” he said.
The country has a population of 46 million inhabitants, with a 7.1% unemployment rate.
Soy
At the end of November, the Argentine government put the so-called “soy dollar” into circulation, with the aim of encouraging exports from the country’s agro-industrial complex. Priced at 230 pesos per dollar, the idea was to attract US$ 3 billion by December 31 — the date on which the variation in the US currency ceased to be in effect.
In the following days, Argentine farmers nearly doubled soy sales, Buenos Aires’ main grain exchange said, after a preferential exchange rate came into effect for exports of the crop.
Dollar
In October 2022, the government announced the creation of two new versions of the US currency in an attempt to contain the economic crisis: the so-called “Coldplay dollar” and the “Qatar dollar”.
The unusual names are for a reason. The first, named after the British band that will soon play 10 concerts in Argentina, represents an agreement with the cultural sector, which will have access to foreign currency at a lower price.
The idea is to encourage international artists to visit the country, whose worsening economic crisis has put the brakes on the cultural scene. The new variation, as reported by foreign press vehicles, allows businessmen in the sector to be able to continue with their activities and guarantee jobs linked to the production of events.
The “Qatar dollar”, so named because of the World Cup and the expectation of higher spending by Argentine travelers abroad, is applied to consumption above US$ 300 in credit and debit cards, at an exchange rate of 300 pesos per dollar.
*With information from Estadão Content and Reuters
Source: CNN Brasil
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