Central Bank of Argentina, the country's monetary policy agency, set up Tuesday – by the end of the year – the maximum increase for the North American currency of 51.45 pounds, a measure that seeks to stop inflation before the new price increase reflected in the latest April report.
Guido Sandleris, the head of the bank, presented the IPOM (Monthly Monetary Policy Report), which has ordered the decision to set new values - the maximum and minimum – of the exchange rate, and thus controls the increase in prices associated with the rise in foreign exchange.
A new measure will allow the central bank to act against the dollar price when its value exceeds the range, ie below 39.75 or above 51.45.
Sandleris has confirmed that, for one time, inflation will be "bigger than the entity would have liked" but assured it would "start falling" so that "the inflationary history of the country would be left out".
Consumer Price Index in Argentina increased in March 4,7% compared to the previous month, according to the same date, the National Bureau of Statistics and the Index (INDEC).
Data show the frequency of increase in turnover (4.2%); housing and services (2.8%); clothing and footwear (6.6%); food and drink (6%); (17.9%), among others.
Following the announcement of the Central Bank, the International Monetary Fund (IMF) once again supported the measures that the South American country – its lender – will apply to counteract inflation. Spokeswoman of the organism, Gerry Rice, confirmed via Twitter the message that the price continues to rise "hard challenge" for the government and for change they are "suitable".
"The latest figures show that breaking inflation inflows remains a difficult challenge for Argentine authorities, and their current monetary policy framework is adequately designed to deal with this issue. We received positive changes to program parameters are announced today, "Rice said.
Last week, Sandleris, together with finance minister Nicolas Dujin, held meetings with the director of the IMF, Christine Lagarde, at the annual plenary session of an international organization held in Washington, USA, where a global economic outlook report was presented. At these meetings Argentine officials informed the Fund's authorities about changes in its monetary policy.
Package of Measures
Faced with the data presented by INDEC and the economic recession across the country, President Mauricio Macri will announce Wednesday a plan of measures aimed at solving various issues.
According to local media, major news is expected to be communicated by the president price agreement in various basic basket products; as well as loans and allowances for retirees, and alleviating the increase in public services and benefits for small and medium-sized enterprises (PYMES).
In his last act on Monday, together with the Mayor of Buenos Aires, Horaci Rodríguez Larretta, Macri expressed his opinion on inflation and thought that stopping "Not easy" because "there are cultural behaviors that cost to eradicate", among which he mentioned politicsto live on a loan. "