Argentinian President Javier Milei Delays Shock Therapy Program
Argentinian President Javier Milei has temporarily postponed his shock therapy program in an attempt to maintain public support in the face of a challenging economic situation, even at the cost of market instability. This was reported by Bloomberg.
This month, the libertarian leader delayed the increase in fuel taxes and utility tariffs, which together would have increased monthly inflation by 1.2%.
Heavily subsidized railway tariffs have been frozen since May, and bus ticket prices have not changed since April.
It is noted that these delays show the path that Milei is trying to take to regulate the damaged economy, avoiding additional inflation growth.
It is expected that new data will show an increase in monthly inflation rates after five consecutive decreases.
According to experts, the Argentinian government has been so focused on achieving sustainable inflation reduction that it has begun to sideline its other goals.
The statement says that any currency moves could undermine the president’s popularity among the middle class, which is the foundation of his program. In addition, electricity bills for the middle class doubled in June.
This month, Argentinian sovereign bonds are showing the worst performance among their counterparts in emerging markets.
