President Javier Milei anticipated that, if the downward trend in inflation continues in the coming months, the monthly devaluation of the dollar could decrease to 1%. In October, inflation was 2.7%, and Milei highlighted that, discounting induced inflation, monetary inflation was at 0.2% monthly (2.4% annually). This could lead to a lower monthly devaluation in the coming months, as the president pointed out.
Regarding the opposition, especially Cristina Kirchner, Milei stated that "she is desperate" because of the changes occurring in the State. He also highlighted that poverty has fallen below 50%, which represents a reduction of 8 points. He sharply criticized the political class and the State, indicating that they are losing their privileges as the economy improves.
Economist Enrique Szewach analyzed the possible impact of this reduction in the devaluation of the peso on prices, explaining that it could generate changes in inflation, especially in sectors like services, dollar-linked goods, and food. On the other hand, he warned that induced inflation, given by the rate of devaluation plus international inflation, could affect the country's export capacity.
Milei reiterated his position to eliminate regulations he deems outdated or that hinder progress, ensuring that his administration will continue to work in that direction. Amid these changes, the dollar could maintain its current rate of depreciation, in line with the crawling peg of 2% monthly. This new perspective comes after two months of decline in inflation, which was 2.7% in October.
