Argentina’s Macri freezes prices of basic goods and public services
BUENOS AIRES: Argentina’s President Mauricio Macri announced a freeze in the price of basic goods and public services on Wednesday in a bid to limit the impact of spiralling inflation that could hamper his re-election hopes in October.
Hit by soaring prices due to inflation that reached almost 55 per cent over the last 12 months, many Argentines have been calling for a change in economic policy.
“It’s a difficult time for Argentine families. March and April have abnormally high levels of inflation due to the unstable exchange rate,” said Finance Minister Nicolas Dujovne.
“We’re convinced we’re going to win the battle against inflation,” he added.
The government has committed to not increasing the price of public services such as transport, gas and electricity for the rest of the year.
Added to that, it has agreed with businesses to a freeze on the prices of 60 basic products, including meat, for at least six months.
The country’s 18 million pensioners and people receiving state subsidies will benefit from price reductions and credit in those businesses.
Last year, under pressure from the International Monetary Fund (IMF), which agreed to a US$56 billion loan, the Argentine government launched an austerity plan to try to reduce the state deficit.
“Given the exchange rate has started to stabilize, we think the time has come to offer a bit of relief to Argentines, who have made so many efforts these last few months that have been so difficult for everyone,” said a government statement.
Since assuming office in December 2015, Macri has steered the country away from the leftist policies of his predecessor Cristina Kirchner.Thefightagainstinflation has been his main priority.
In March alone, prices rose by 4.7 per cent in Argentina. The population has suffered a dramatic drop in purchasing power over the last 12 months.
Theirproblemswereexacerbated by a currency crisis that saw the peso lose half its value against the dollar in 2018.
Since the start of 2019, it has already lost another nine per cent.
“We remain convinced that to reduce inflation in the long-term, and to end this problem we’ve been suffering from for 75 years, the profound and structural changes we’ve committed to these last few years are indispensible,” said the government statement. — AFP
It’s a difficult time for Argentine families. March and April have abnormally high levels of inflation due to the unstable exchange rate. Nicolas Dujovne, Argentina Finance Minister