Guzmán promised that after the increases of 17% in electricity and 20% in gas for June, there will be no more rate increases in 2022

After the announcement of the increase in the floor of the Income Tax for employees in a dependency relationship from $225,937 per month to $280,792, the Minister of Economy, Martín Guzmán, promised that the increase in rates announced for June will be “the last of the year” and trusted that inflation will continue to fall.

“The one in June is the last rate increase of the year,” Guzmán said in statements to AM750 and argued: “If there were doubts about the economic program, now there are none. We deliver on everything we promised: the tariffs issue has already been resolved and most of the joints were closed“.

In this framework, the national official specified: “In terms of tariffs, exactly what had been announced in the economic program was done, which is to have a scheme where updates are segmented“.

In addition, he considered that “inflation has been the most complex problem in Argentina for a long time“, and assured that the increase in price indexes is the main problem in the world, but in Argentina it is “stronger because it has already been dealing with that problem for many years.”

The economy is solving problems that were very serious and that it was essential to resolve so that we can continue on the path of recovering by generating employment and also to be able to attack the problem of inflation in an international situation that has been complex, first with the pandemic and then the situation of the war in Ukraine, which It has consequences for everyone,” he analyzed.

Martín Guzmán during the press conference for the increase in the profit floor at the Casa Rosada. Photo: Guillermo Rodriguez Adami

At that point, he considered that “there is so much habit in the inflationary process that the economic dynamic itself gives persistence to this phenomenon, which is the first thing to break”.

“That is broken by having a consistent macroeconomic policy. What does it mean? That what we do from fiscal and monetary policy has to help the country gather reservesto collect dollars. When dollars are lacking, there is more inflation and the recovery of economic activity cannot be sustained. When there are dollars the country can grow and exchange stability is ensured and when there is greater exchange rate stability, inflation drops,” explained the national official.

Likewise, he highlighted an “absolute commitment” of the national Executive with “a economic program which, among the objectives to which it aims, includes accumulate reserves in the Central Bank“, given that it would allow “expectations to calm down and inflation to go down”.

As for the probability of increasing withholdings in the agricultural sector or setting export quotas, the national official ruled out the possibility: “In no way are we going to go along the lines of prohibiting or affecting exports. On the contrary, Argentina needs exports to increase in order to experience sustained growth.”

Guzmán: “Inflation in May will be lower”

The Economy Minister predicted that inflation in May will be “lower than in April” and explained that the index for March was the “most difficult” because “the war in Ukraine was combined with the doubts that arose about whether the economic program was going to be implemented or not”.

“Hoy we are in a situation that is still complex, but that is very different from two months ago. We are building the conditions so that the monthly inflation rate continues to fall. Is it something that can be resolved in minutes? Not in any way. Argentina is building the conditions for scontinue in the line that the monthly inflation rate decreases”he emphasized.

For the national official, you have to “work by connecting the very short term with the less immediate“, because “it is useless to do something that generates an improvement in a month in exchange for everything being destroyed in three months”.

Asked about the resignation of Roberto Feletti to the Secretary of Domestic Trade, he highlighted: “He did a very valuable job, I had proposed him to continue in the position at the time of the transfer of the Secretariat to Economy. His decision was to step aside and with the new secretary, Guillermo Hang, we will continue to carry out a pricing policy along the same lines as we were working on.”

"Roberto Feletti did a very valuable job, I had proposed him to continue in the position"indicated Martín Guzmán. “Roberto Feletti did a very valuable job, I had proposed him to continue in office,” said Martín Guzmán.

“With Roberto we have talked a lot that The most important thing for price policy is macroeconomic policy,” he added.

Guzmán anticipated that the inflation goals were modified due to the war between Russia and Ukraine: “When we update the 2023 Budget we will review the inflation projections. Work continues with the central objective, which is to recover the purchasing power of salaries, so that salaries beat inflation.”

Regarding the joint negotiations, he acknowledged that “clearly nothing is enough” and justified: “The purchasing power of wages fell 20 points since 2015, to which was later added the pandemic, with the product of the economy falling 9, 9% in 2020. It is from there that wages are starting to recover today.”

By Editor

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