Cavallo said that “annual inflation is going to be above 120%.”

After the 7.7 percent increase in the inflation rate in March, Domingo Cavallo, former economy minister, estimated that annual inflation will be “above 120 percent” and explained Sergio Massa’s aspirations for the end of the year. This government cannot implement a stabilization plan, because nobody believes it,” he said first. Along these lines, Cavallo indicated that “the best thing he can hope for between now and the end of the year is inflation of no less than 6 percent per month, preventing us from ending up in an inflationary explosion is the only thing Massa can aspire to.” Thus, in statements to Radio Mitre, the former Minister of Economy left his prediction about the numbers that inflation can reach at the end of 2023. “By the end of the year, annual inflation is likely to be above 120%; what this government could do is simplify the operation of the exchange system,” he said. In this way, he then detailed the strategy that could work to slow inflationary growth. “For example, this thing now there are a lot of different exchange rates for the trading market. Well, they would have to unify it, there would have to be only one commercial exchange rate. And with respect to non-commercial exchange rates, those that apply to transfers, tourism and financial issues, there are also several exchange rates, even with a large intervention of the Central Bank, which makes it totally unpredictable. They would have to let a free market work,” he said. According to the economist, Argentines will have to wait until the next government to improve the situation. “Only when the government changes with ideas of a free economy for private activity and controlled economy for public activity, when there is no interference from the state in everything that is the operation of the markets, will it be possible to stabilize,” Cavallo said.

Original source in Spanish