Tuesday, February 1, 2011

‘No such thing as an inflationary process,’ Boudou, De Vido say

Economy Minister Amado Boudou and Federal Planning Minister Julio De Vido both strongly rejected the existence of an “inflationary process or sustained price hike” in the country.

“Technically, inflation happens when there’s a drop in investment or a fiscal deficit. However, such a thing is not happening in Argentina since investment is constantly on the rise here,” Mr. De Vido said.

“By not having to face these two variables, we may have to deal with price tensions and dispersion, but, despite what the opposition likes to say, there’s no such thing as an inflationary process.”

Almost at the same time, Mr. Boudou acknowledged that “there may be price hikes in specific seasonal products” and advised the population to “avoid buying those products.”

“I strongly stand by comments in which I suggest people to walk around, looking for the best prices available. Sometimes, in the same neighborhood, several stores have the same product twice or thrice as expensive,” he explained.

Mr. Boudou closed by highlighting that prices in public transportation and public utilities had not gone up, which was “largely thanks to this government.”