Official inflation calculations hide a higher price rise than the one surveyed

MOMARANDU – The economist Aldo Abram in statements to said that the price inflation calculations are distorted and that the government conceals a higher price rise behind controls and maximum prices, and estimated that due to the constant monetary issue, the peso it will continue to lose value and there will be a general increase in public and private goods and services.

“The government has taken as a drop in inflation the fact that during the quarantine where many activities could not function, therefore, in those activities there were no prices, and there were large distortions of the same,” said economist Aldo Abraham In statements to, he consulted about the economic scenario that Argentina enters before closing 2020.

“The INDEC surveys were well done but they were adding a distorted reality, due to price controls, maximum prices, and so many other things. From that, he has considered that, obviously, the fact that they are issuing more than they can to finance the government, which, fundamentally, means that the Central Bank produces more pesos than the people want, “he said.

“Therefore, as would happen like any other good, -the peso- loses value, and loses purchasing value for the people, the pesos they have-lose value-“, he pointed out. “That was not assimilating inflation, and well, the issuance has risen to the rhythm, and what worries is that people, already, for some months, are tired of this continuous reduction of the purchasing power of pesos, and, therefore Therefore, it is stopping to sue, and any product that stops being sued and you cannot have it in your pocket because it is losing value ”, he stressed.

Abraham said that the same thing happens with the weight that happens with any other product when its price falls. “You reduce it to the maximum,” he remarked.

“It will be seen that its value falls, and we are also seeing that with the peso, multiplied here because the producer increases the amount of pesos. And where is it going to be seen? We are seeing it in the parallel dollar, which are the ones that are freely quoted and, – it will happen – as would happen anywhere in the world, if we are not in a free exchange market, never in the stocks, because they are fixed artificially cheap there from the Central Bank ”, he estimated.

Abraham said that “the bad thing” of this scenario is that the peso “is losing power”, a fact that will be transferred against the user and the consumer in the purchase and payment of goods and services.

“The bad thing is that the peso is losing purchasing power and that in time is going to be noticed in goods and services, because when you are going to want to buy something in time they will say that the products are not worth the same as before” , he remarked.

Abraham that the same will happen with the prices of the companies with which the government established stable values.

“Those who forced their price to go back to March, during all this time they were seeing their costs grow in dollars at two and a half percent, at three percent, which is what the official dollar has been increasing,” he explained. “All the services they hire are rising to two and a half, three percent,” he said.

For these reasons, “not only foreign companies are leaving, Argentine companies are leaving, Argentina”, lamented the economist. “That is logical because, let’s say, the quarantine and price freezes, decided by the government, have lost a lot more money than they should be losing, and they are not charitable associations,” he stressed.

On the other hand, the economist Aldo Abraham regretted that comments have emerged from the circle of President Alberto Fernández referring to the corralito that Argentines lived during the economic and social crisis that Argentina went through at the turn of the millennium.

“Argentina has a record of statements of this type that have remained in history,” he said.

“Whoever bets on the dollar loses; whoever put in a dollar will get a dollar; continue with countless examples of our politics and of our economists saying things that were impossible to sustain and fulfill, and, of course, that what the president has said has shaken the noose in the house of the hanged man, at a time when it was really unnecessary, “he said.

“It is true that we are having an outflow of deposits, in dollars, from the banks, but the banks have, first of all, great liquidity in dollars, much more than the government has,” he stressed.