For us, conservatives, there’s no surprise in the fact that governments that are fiscally responsible and are rooted in the good, tried and tested practices of capitalism will succeed.
But many in the world are still surprised by the many victories by libertarian Argentine President Javier Milei.
It now arises that Argentina’s inflation slowed to 2.7% in the month of October, slowing down from 3,5% in September.
That’s the lowest level in three years.
Milei came to power less than a year ago, promising to pull the country out of a dire economic crisis.
Associated Press reported:
“On an annual basis, inflation in October was 193% compared to 209% reported in September.
Milei has trumpeted falling prices in recent months as a victory in his fight against Argentina’s worst economic crisis in over two decades.
The government has promised to reduce inflation below 3% before the end of the year, something it finally did.”
Now that the inflationary pressure begins to slow down, Milei floated yesterday (12) that he may change the currency policy next year if inflation stays constant in November and December.
Bloomberg reported:
“Milei said he would slow the monthly pace of currency devaluation that the central bank controls, known as the crawling peg, to 1% from 2% if price increases stay at or below October’s 2.7% reading. Annual inflation also slowed to 193%, dipping below 200% for the first time since he took office.”
Milei has talked about up the policy change before, but for the first time he put a specific time frame on the potential moves.
“’Nobody can doubt that we are in the best moment since the president’s inauguration’, Economy Minister Luis Caputo said at an event at the Buenos Aires Stock Exchange earlier Tuesday.”
Milei and Caputo are now deservedly basking in a series of good news after inheriting Argentina’s dire economic crisis from the leftist outgoing government last December.
What’s more, wages have risen higher than inflation for the last six months.
“At the heart of the inflation slowdown is Milei’s unwavering commitment to a balanced budget. Argentina posted another fiscal surplus in October, Caputo said.”
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