Argentina's Minister of Economy, Luis Caputo, stated that January's 2.9% inflation occurred “in a context of relative price readjustment” and expressed confidence that inflation will reach international levels. The message was retweeted by President Javier Milei. Caputo explained that “this price dynamic is occurring in the context of relative price readjustment and a few months after a sharp drop in money demand, which reflected in an accumulated dollarization in the six months prior to the October elections equivalent to over 50% of M2.” He also affirmed that “the economic program has as its fundamental pillars the fiscal balance, the strict control of the money supply, and the recapitalization of the Central Bank.” The Minister of Economy emphasized that this “will allow inflation to converge to international levels in our country for the first time in over two decades.”
