President Mauricio Macri predicted today that inflation in August will come in above three percent, after the peso's sharp devaluation against the dollar earlier this month.
"it's going to be three-something in August. It's not good, it's very bad," the president said at an event alongside agricultural producers and farm-owners.
"What the normal Argentine – the everyday Argentine, the Argentine family, their fridge – suffers most is inflation. To have your [monthly] salary arrive and then to receive another increase again," said Macri.
""It's desperate, it's distressing. There are no words to describe what I know is happening to all Argentines [with inflation]. We have to solve it, that's it. We can't keep fooling ourselves," the president added.
Speaking at an event organised by the Inter-Cooperative Agricultural Confederation (CONINAGRO), led by Carlos Iannizotto, at the Catholic University of Argentina, the president then predicted that August's rate would be above three percent, saying it would be a consequence of the peso's slump after the PASOs. In the primaries, Macri slumped to defeat against his Peronist rival Alberto Fernández, who emerged with a clear 15-percentage point lead.
Data from the INDEC national statistics bureau revealed that prices in July rose 2.2 percent from the previous month. Inflation in the first seven months of the year now totals 25.1 percent. Prices have increased by 54.4 percent over the last 12 months.
Macri said that his government was facing an "unexpected situation," adding that he is "responsible for the situation." He said he had ordered his economic team to stabilise the exchange rate and secure the nation's finances.
"We are at an unexpected juncture that clearly altered the programme Argentina was following, which was beginning to bear fruit," said the head of state.
The president added that the PASO primaries had been a wake-up call for his administration.