Argentina is reaping its first rewards in the fight against inflation, as a private consulting firm found that the inflation in food and beverages reached 0% during June’s third week. President Javier Milei celebrated this achievement, stating that his administration was rewriting economic theory and that he might receive the Nobel prize if successful.

Javier Milei Celebrates Zero Inflation Achievement During June, Claims to Be Rewriting Economic Theory in Argentina

Argentina is harvesting the first benefits of its fiscal policies regarding inflation. According to data from Econometrica, a private consulting firm, the country reached an economic achievement, registering zero inflation for food and beverages during June’s third week. The research took prices of over 8,000 articles in several online stores and found that prices didn’t change compared to ones collected the week before.

This milestone indicates that President Javier Milei has been slowly taming inflation levels, which have been diminishing since he took office and started applying restrictive economic and fiscal policies. Econometrica estimates that monthly inflation numbers for this category might reach 2.4% in June.

Nonetheless, this is just a small victory for Milei’s administration. Argentina is still one of the countries with the highest inflation in the world, registering an interannual price increase of 276,4%.

Eliminating inflation was one of the most relevant promises of Mileis’s presidential campaign, promoting dollarization as a tool to achieve this end. The country’s economic standing has made dollarization unattainable, but inflation has answered positively to Milei’s cuts.

During a stop in the Czech Republic as part of a European tour, Milei celebrated reaching this goal for the first time in 30 years. He stated:

With my chief advisor, Demian Reidel, we are rewriting much of economic theory. If it ends up going well, they will probably give me the Nobel Prize in Economics along with Demian.

Recently, Milei stressed that in the future, many currencies will be used and compete in Argentina, including bitcoin and more fiat currencies.

Source : Bitcoin News - Jun 25, 2024