November 21, 2014
Capitanich: inflation continues decelerating
Cabinet chief also previews that AFIP tax bureau will report record revenue in April
The country’s inflation rate is decelerating, Cabinet Chief Jorge Capitanich said yesterday, when he also previewed that the tax revenue in April would reach a new record.
Speaking during the inauguration of a public works project in Corrientes financed by national funds, Capitanich said that trends indicated a reduced, yet still positive, rate of inflation and pointed to price control measures as the main reason for the reduction.
A report published yesterday by Elypsis, an economic consultancy, seemed to coincide with the Cabinet chief’s diagnosis as it published a 2.5 percent inflation rate for April — the lowest monthly measurement since November 2013.
That number would mark a 0.1 percentage point decline from the 2.6 percent rate of inflation that the INDEC statistics bureau reported in March.
That number was in itself a deceleration from February, when the INDEC reported inflation at 3.4 percent.
The rate is also significantly below the 4.4 percent average that Elypsis has estimated for the first quarter of 2014.
Elypsis director Eduardo Levy Yeyati estimated that the INDEC inflation rate for April would not be greater than two percent.
The former Chaco governor praised the Price Watch programme, noting that it is “spreading across the country, with participation and social solidarity” and emphasized that “economic policy is consistent in terms of foreign exchange as well as monetary, fiscal and price matters.”
The Cabinet chief added that the opposition is trying “to minimize the strategic importance of decisions that achieve stability and economic certainty.”
Capitanich also questioned the opposition’s “moral authority” over inflation estimates but did not specify what the inflation rate for April would be.
Tax revenue on the up
In addition, the Cabinet chief announced that on Monday the AFIP tax bureau is set to report record tax revenues, noting the importance of that cash to keep Argentina’s fiscal balance sustainable.
Capitanich also highlighted the major public works in the region, including a campaign to extend natural gas access in the north-east of the country and a second bridge to connect the provinces of Chaco and Corrientes.
The government is striving to finalize the natural gas works in 2015, with the Cabinet chief noting that various segments of a new pipeline have either been set to tender, already adjudicated or currently under construction.
Picking up on this week’s presidential announcement of a refinancing of provincial debts, Capitanich reiterated that in the period from 2003 to 2013 there was increase of 1,070 percent in funds allocated to the provinces and a corresponding 132 percent increase in provincial debt in the same period, prompting him to note that “the debt-to-budget ratio has drastically fallen.”
After the inauguration, Capitanich met with Corrientes Governor Ricardo Colombi (Radical Party), who later said that “with the national government we can move forward on all of the matters related to public administration.”
Capitanich is expected to meet the Corrientes Economy Minister Enrique Vaz Torres on Monday.
Herald staff with Télam