[ad_1]
By Victoria Argüello
BUENOS AIRES, July 9 (Xinhua) – The gradual increase in fuel prices in Argentina will put pressure on inflation during the second half of 2018, said the Argentine economist Pablo Salvador. "The increase brings inconvenience because fuel is a very important input of economic activity throughout the country because it occupies a large part of its costs," said Salvador to Xinhua.
naphtha and diesel price increases, which have only increased by 6 percent so far in July, and six increases have already been recorded throughout the year .
"When fuel prices rise, it directly affects transportation, which implies an increase in the price of freight and therefore of food moving from one province to another and, consequently, , impact the pockets of consumers. "
The echo The nomista explained that among the causes of the increase in fuel prices, there are macroeconomic and external variables, since they are adjusted according to the international price of the barrel of oil as well as the exchange rate.
two variables, this moves automatically to prices, "he added.
Currency volatility that led to a depreciation of the Argentine peso against the dollar by more than 30%, he added up the barrel of oil.The columnist of the local newspaper "El Cronista" explained that the increase did not materialize by an agreement that maintained the former composition of the Ministry of 39, Energy and Mines, under the former Minister Juan Jose Aranguren, with the oil companies, which resulted in a momentary freezing of prices.
the new Minister of Energy, Javier Iguacel, has recently confirmed that there would be no intervention by the executive on the evaluation of fuels, ensuring that they were "free".
At this Regard, Salvador warned against the impact of the increase Consumer price index (CPI, inflation indicator) , increase of the basic food basket and the total basic basket "which measure the level of indigence and poverty of the Argentine population".
He explained that it is necessary to establish new agreements for wage increases, otherwise the line of poverty and poverty would increase in the coming months.
Behind Venezuela, Argentina is the second country in Latin America with the highest inflation, reaching 25% percent in 2017.
No official projections of Inflation for 2018, year in which the government of Argentine President Mauricio Macri reached an agreement with the Fund My International Monetary Fund (IMF) for a credit of $ 50 billion, Argentina plans to offer official figures for the reduction from next year.
"Inflation particularly harms sectors that have less, because who is on the line of poverty and indigence has no way of paying on credit (credit card) or does not have a savings account, and then is forced to pay in cash, "he said.
For Salvador, avoid this scenario reflected in the "struggle" that the Central Bank of the Republic of Argentina (BCRA) continues to reduce inflation.
Up to now, the entity has maintained the level of its high benchmark interest rate to put pressure on low prices, in addition to working on the forex market looking to recover the confidence of local and foreign investors.
Salvador said that the "fight against inflation has been difficult" because of "high budget deficit" "Argentina maintains, despite the efforts of the executive to minimize this deficit. "
However, the analyst pointed out the "willingness" of the economic team to achieve this goal.
Source link
