The Fernández government accumulated the highest inflation during the first two years of administration since 1991.

Libertad According to a report by the Progreso Foundation, following the assumptions of Alberto Fernández in December 2019, Argentina accumulated a total inflation of 123%, a level that has not been recorded by management in the first 26 months since 1991, therefore, despite promises of the president, the punishment of price increases and the devaluation of the currency continue to affect the Argentine people. The war against inflation begins in Argentina on Friday.”

According to the consultancy, the largest increase by category can be seen in “Clothing and footwear”, an increase of 179%, almost 60 points above the general index.

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It also observed an increase above the average in the food sector, which rose 132% and is the item with the highest incidence in the consumer price index (CPI) measured by the National Statistics and Census Institute (Indec). The Foundation emphasizes that “this phenomenon also occurs within the scope of the application of export duties and the closure of exports”.

This analysis shows the price increase in the first 26 months of administration, so inflation is not taken into account in all presidential efforts. We should not forget that in the third year of the Cambiemos government there was an inflation of 47.6% according to Indec, which at the time was the highest value in the last 27 years.

On the other hand, the Mediterranean Foundation highlighted that inflation rises step by step with each new government administration in the context of the stagnation suffered by the Argentine economy in the last decade.

During the second term of former President Cristina Fernández de Kirchner, the price increase was 2.2% per month on average, reaching 29.5% per year, and the accumulated value over the first 26 months was 75.2%.

Regarding the management of former President Mauricio Macri, the Mediterranean Foundation explained that monthly inflation reached 2.4%, annual inflation was 32.8%, and accumulation in the first 26 months was 85%.

He added that until now, during President Alberto Fernández's term, monthly inflation averaged 3.1%, annual inflation was 44.9%, and the total for the first 26 months was 123%.

Eugenio Marí, chief economist at the Libertad y Progreso Foundation, referred to the statement by the head of state on inflation and pointed out one of the reasons for the price increase in this regard. “If you want to keep your word, you must declare war on the fiscal deficit on Thursday. Last year, the Treasury's support to finance the deficit by the Central Bank was 3.7% of GDP, which is equivalent to 2 trillion pesos”.

“The government continues to bet on export controls and banning the containment of food prices, which is far from being a real battle against inflation,” said the economist.

Marí thought that these measures had already been implemented in the past and “always contributed to destroying exports, losing the market and reducing the level of registered employment. In addition, as production is not encouraged, at the end of the day there is less wealth and supply of products, which increases poverty”.

Diego Piccardo, economist at the Foundation, pointed out that the items that regulated the price in the composition were significantly behind the others. “This is clearly seen in the prices of public services that have practically frozen since the government took office and are now beginning to thaw. That way, when macroeconomic imbalances continue and regulatory prices begin to adjust, this year's inflation is expected to rise above 50.9% in 2021.”

According to Indec, inflation accelerated again in February, reaching 4.7%, accumulating a 52.3% fluctuation in the last 12 months. Tuesday. The first two months of the year thus began with a high inflation rate, as the CPI reached 3.9% in January. This began to question the validity of the official perspective agreed by the government and the IMF.

Against this background, at the end of January 2022, market analysts expected retail inflation for the central bank to decrease every month. The year was 55% year over year, which is about 2 percentage points higher than the previous survey.

The data comes from a Market Expectation Survey (REM) conducted by monetary authorities among consultants, banks, universities and other institutions that predict key indicators of the economy.

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