Caputo admits disinflation slowdown but reassures on economic stability

Minister of Economy Luis Caputo acknowledged on Thursday that the disinflation process has slowed in recent months, but sought to reassure the public by stating that it will get back on track in the short term. He confirmed that the economy is 'tremendously in order' and attributed much of the current distrust to the economic and psychological damage accumulated from years of mismanagement. Caputo also stated that the government will not return to the international market to place bonds in the short term and confirmed the existence of cheaper financing sources for upcoming debt payments. He emphasized that the goal is to refinance 'as cheaply as possible' and develop other avenues, including the local market, asset sales, and alternative financing schemes. Regarding inflation, the minister explained the slowdown as a result of a recomposition of relative prices, particularly due to regulated prices and meat, and described these as temporary factors rather than a structural change in trend. During his speech at the 21st Symposium on Capital Markets and Corporate Finance, Caputo stated that the government can control the money supply, but not the demand for pesos if skepticism and the memory of decades of instability persist. He summarized: 'We cannot force Argentines to hold pesos.' Nevertheless, he maintained an optimistic tone, asserting that the economy is 'tremendously in order' and that inflation should return to a downward trajectory once the effect of pending corrections is absorbed.