The IMF will recalculate Argentine inflation | Chronic

The International Monetary Fund (IMF) will examine the inflation rate forecast for this year in February, as it calculates that it will be higher than the 20% forecast for 2019.

The director of the IMF's Western Hemisphere Department, Alejandro Werner, admitted that they expected a higher price increase than expected.

The latest IMF report estimated that inflation would be around 20%. Presenting the outlook for the region in Washington, he pointed out that the IMF does not generally revise the inflation estimates of the countries in question, but he admitted that "The examination will be carried out at the end of the visit of the technical mission, which will visit Argentina in mid-February".

Anyway, the economist once again supported the Argentine government on measures that, among other things, will "A gradual reduction in the interest rate and a downward trend in inflation".

"Inflation expectations will slowly drop as they stand at around 27% to 28% by 2019. However, a drop in inflation of a rate close to 50% to a rate of 27% to 28% a slow fall ", Said Werner, to admit later that "The probability is that we are revising our inflation forecast by 20% up for this year because the 2018 closing was well above the estimate".

Recovery
However, he considered that "We are witnessing an economic recovery in the second half of the year".

In this regard, he stated that "The inflation and its forecasts are down since October, which, if it was prolonged, would allow a gradual reduction in the interest rate".

At another time, he warned that "Presidential elections to be held this year could reduce the appetite for reform" of the Argentine economy.

The praise of the IMF official for changing the economic plan adds to the overwhelming support voiced yesterday by the agency's general manager. Christine Lagardeafter meeting with the Minister of Finance, Nicolás Dujovneand the President of the Central Bank of the Argentine Republic (BCRA), Guido Sandleris.