Milei: Inflation in Argentina is decreasing
According to President Javier Milei, inflation in Argentina is decreasing, and they have managed to avoid the dreaded hyperinflation, or at least, that’s what the far-right government believes.
President Javier Milei conveyed a message of optimism during a brief encounter with the audience at the Roxy Theater in Mar del Plata.
Amid the play “Fátima 100%”, starring his partner, the artist Fátima Flórez, Milei noted that inflation in Argentina is decreasing.
Addressing the event attendees, Milei stated that “inflation has started to decrease” and expressed confidence that the country “will soon move forward.” During his stage intervention, he reminded those present of his initial forecast.
“Last time I came, we were just a few days into the administration, and I said it would be difficult, but we would achieve it.”
Inflation in Argentina is decreasing
The president highlighted the progress made since the beginning of his administration. “We’re achieving it.
We avoided hyperinflation, inflation in Argentina is decreasing, and we will soon move forward, so have faith that we will succeed.”
In this context, Milei shared the stage with his partner, the artist Fátima Flórez, to whom he also showed affection, including a kiss.
The President closed his intervention with an energetic rallying cry for freedom: “Long live freedom, damn it.”
The president and the artist also celebrated the artist’s birthday at one of the most emblematic hotels on the Atlantic coast.
As usual, the head of state’s transportation was by commercial flight from Jorge Newbery Airport in Buenos Aires.
Milei was accompanied on this trip by the Secretary-General of the Presidency, Karina Milei, and the presidential spokesperson Manuel Adorni.
This was not the president’s first trip to Mar del Plata, as he had made a similar trip on December 29, opting for a commercial flight for his transfer.
Remember that Milei explained, “we’re going to be worse off than before for a few months, particularly in terms of inflation,” but his confidence at the Roxy Theater encouraged those present.
Despite Milei’s assertion that inflation is decreasing in Argentina, there are indicators explaining the economy’s deterioration.
In this regard, in January 2024, retail sales of small and medium-sized enterprises experienced a significant decrease of 28.5% compared to the same period the previous year.
Read more: The first meeting between Alberto Fernández and Javier Milei.
This was indicated by the constant-price measurement of the Argentine Medium-sized Enterprise Confederation (CAME). On a seasonally adjusted month-on-month basis, there was a decrease of 6.4%.
This year started with a poor performance in the commercial sector, marked by few transactions and low foot traffic in stores. Despite this challenging scenario, the textile sector emerged as an exception, achieving a 0.9% increase compared to January of the previous year.
This increase is attributed to a combination of attractive offers and purchases made in large quantities by international tourists visiting Argentine cities.
Six of the seven sectors surveyed in December recorded year-on-year declines in sales.
The largest annual contraction was detected in Pharmacies (-45.8%), followed by Food and Beverages (-37.1%). The only sector on the rise was Textile and Clothing (+0.9%).
These declines in sales could be a reason for the decreasing inflation in Argentina, as a result of reduced demand in various sectors.
Meanwhile, Milei has won a battle, as the “omnibus law,” the flagship project of the Executive, was approved in general this Friday, February 2nd, in the Chamber of Deputies of the Argentine Congress by 144 in favor and 109 against.
The Omnibus Law consists of a package of 664 articles divided into 10 titles covering various topics such as the declaration of public emergency, deregulation of the economy, privatization of state-owned enterprises, tax changes, undeclared capital whitening regimes, security, defense, health, justice, and education, among others.
