Argentina’s Deputy Economy Minister Says Inflation Is No Longer the Problem
José Luis Daza told a Buenos Aires conference that inflation is not, for him, a subject any more. The July numbers are less relaxed. The post Argentina’s Deputy Economy Minister Says Inflation Is No Longer the Problem appeared first on The Rio Times .
On 20 August 2026, Argentina's Deputy Economy Minister declared that the fight against inflation was essentially over, though the latest data contradicts this assertion. He stated during a speech in Buenos Aires that for him personally, inflation is not a subject. Despite the blunter English paraphrase, he did not claim that inflation has been beaten, only that it will continue to fall.
He highlighted Argentina's solid fiscal accounts and mentioned that approval of a bill providing formal independence to the Banco Central de la República Argentina would be a confidence shock for the economy. This bill, which has not been passed yet, would grant the central bank formal independence, including limits on its ability to finance the treasury and a mandate focused on controlling prices.
The national statistics agency, INDEC, published the July inflation figures on 14 August, showing consumer prices rose 2.1 percent in the month, and 33.8 percent over the year. The core inflation, excluding seasonal and regulated items, was 1.8 percent for the month and 32.2 percent over the year. Despite the recent monthly increase, the annual inflation rate is still relatively low compared to other countries.
The proposed central bank reform aims to formalize the central bank's independence from the executive branch, with a narrow mandate focused on controlling prices. If the reform passes, it could lead to a narrowing of the country risk spread, which measures the extra yield Argentina pays over US Treasuries. However, this reform has not yet passed, and its effects on the economy are yet to be seen.
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