Economy Minister and Unión por la Patria (UxP) presidential candidate Sergio Massa said that the inflation rate for the entirety of 2023 will “likely” be at least 100%, but that there is no risk of hyperinflation. According to the monthly inflation report published last week by the INDEC, August registered a 12.4% rate — the highest in 32 years — while accumulated inflation for the year was 80.2%. 

“Inflation will depend a lot on what happens in October, November and December, taking into account the fixed exchange rate we established after the devaluation imposed on Argentina by the IMF […] The impact of devaluation will lead to an annual [inflation rate] that is likely to have three digits,” Massa said in an interview with TV station LN+.

Asked if there was a risk of hyperinflation, he just said “no.”

The Economy Minister placed the blame for the inflation mainly on the historic drought that has cost the country what the minister said was close to US$21 billion in lost export duty. Although he acknowledged that the government had also made “mistakes,” he sought to differentiate himself by saying that when things started going badly, he “stepped up and took charge.” 

In addition to inflation and the country’s current economic woes, the interview also addressed the minister’s presidential campaign and what decisions he would take if he were to win the election and become president. Massa said he had already decided on who his Economy Minister would be, but for the moment would not announce it. 

Massa also seemed to distance himself from the current administration, saying that half of Alberto Fernández’s ministers would not be part of his potential government. He also said that he would call on members of the opposition to be on his staff.

“I [would appoint] ministers from the Radical Party; no one should be surprised by that. I would also call on Peronists that are currently a part of PRO,” he said, referencing the political party created and led by former President Mauricio Macri. 

— with information from Télam