Economy Minister Luis Caputo emphasized the implementation of a different model in Argentina aimed at offering higher quality products at more accessible prices, highlighting that devaluation has not been the solution to the country's economic problems. According to him, devaluing has only led to an increase in poverty and macroeconomic distortions, instead of turning Argentina into an economic powerhouse.
When asked why certain products like clothing, cars, and dining out are more expensive in Argentina compared to other countries, Caputo acknowledged that there are advanced prices in certain sectors, but clarified that this does not necessarily indicate that the dollar is undervalued. Regarding automobiles, he mentioned that in Uruguay they are more expensive and that, with the price reductions implemented in Argentina, they are expected to be 25% more expensive in the neighboring country.
In relation to clothing, the minister admitted that it is indeed more expensive in Argentina due to excessive protection of the textile industry. Citing the example of a company that sells the same garment at half price in Chile compared to Argentina, he highlighted the lack of competition in the sector. However, he anticipated a possible significant reduction in clothing prices over the next 12 months due to market opening.
Caputo rejected the idea of devaluing the national currency and stressed that the key to reducing prices lies in fostering competition in the market. As for the inflation projection, he estimated that in January it would be around 2.3% and expressed hope that it could decrease to 1% in February. He concluded by stating that the process of disinflation will continue and that there will be no changes in the government's macroeconomic policy.
