IMF attributes inflation to higher wage increases than expected

As the journalist Liliana Franco reveals in Financial field, the IMF considers in its document of the third revision of the By By position that "the reduction of inflation will be a prolonged process". In addition, it argues that the recent price increase "was determined by the combination of several factors, including rising rates, salary increases above expectations and the reconstruction of margins in the manufacturing and trade sectors ".

In this sense, the Fund anticipates that rate hikes and the recomposition of corporate profit margins will maintain inflationary pressure. "for a few months."

This Saturday, the chef de cabinet Marcos Peña He acknowledged that inflation would continue to grow and that the March index would remain high. Despite this, he ratified the economic course, the reverse of which justified the crisis: "We want to control the accounts," he said in statements on the radio.

Marcos Peña

For its part, Peña agreed with President Macri that "price control is a faulty tool" "nowhere in the world is it used".

The details of the third revision of the Stand By agreement have been made public after the IMF approved Friday an expenditure of nearly 11 billion US dollars for the country.

"The Board of the International Monetary Fund (IMF) has completed today (Friday) the third review of Argentina's economic development as part of the agreement. 36-month confirmation date approved on June 20, 2018. The conclusion of the review allows the authorities to convert the equivalent of SDR 7,800 million (approximately US $ 10,800 million), bringing the total purchases from June 2018 to 28,013.71 million SDRs (about 38.9 billion USD), "he said. the multilateral body in a declaration.

As a result, the country's debt to the Fund was close to $ 40 billion and maturities would begin next year.