Re:Notes on Argentina
by vitorgrs on Monday January 27, 2025 @01:01AM
(#42837898)
Inflation in Argentina is still not under control. If the current number continues, they will have 30%~ yearly inflation. Argentina already saw this number before numerous time, including under Macri government.
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In Argentina, the informal (free market) peso to dollar rate is called the “blue dollar,” it rose from about 200 to 1200 pesos per dollar in the 2 years prior to Milei taking office and has held relatively steady since: https://bluedollar.net/informal-rate/
Yes, I'm aware of that. Doesn't change the fact that inflation is still high.
But the real issue is, the "oficial" dollar rate is controlled by Central Bank, and it won't be for long. When, as he promised, he let the peso float totally free, we'll really know even if the inflation can continue at 30% yearly.
Let alone, together with this, the growth of this year, that will likely pressure the inflation. They managed to reduce the inflation to 2.7% monthly, while the country was in a 3% GDP recession.