Latin America Advisor 2022-10-24 – Inter-American Dialogue

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

October 24, 2022

What Can Argentina Do To Get Control Of Rising Prices?

Argentine President Alberto Fernández’s government is facing an possible annual inflation rate of more than 100 percent this year. // File Photo: Argentine Government.

Q

Thousands of Argentines took to the streets of Buenos Aires in late September in order to demand that the government do more to address skyrocketing inflation and help the poor. The country’s poverty rate stood at 36.5 percent in the first six months of this year, a slight decline from the same period last year, the INDEC statistics agency said Sept. 28. In early October, analysts in a central bank survey said they expected inflation to surpass 100 percent this year. What are the main forces keeping Argentina’s rates of poverty and inflation elevated? How well is President Alberto Fernández’s government managing the economy, and what more should it do? What could protests and increased public pressure lead to in terms of government policy changes in Argentina?

A

Miguel Kiguel, executive director of EconViews in Buenos Aires: “Inflation has doubled this year, and the annual rate is hovering at around 100 percent. This increase was somewhat surprising because it took place without a large increase in utility rates or a step jump in the exchange rate and in a year when the government is tightening macro policies. The main concern is that there is little chance of reducing inflation next year. Expectations are not anchored, unions are already indexing wages to prices, and there is no comprehensive stabilization program in the horizon, in part because 2023 is an election year and in part due to conflicting views about how to deal with the issue within the government coalition. In the meantime, the government might try to reach agreements on…”

Top News

U.N. Security Council Sanctions Powerful Haitian Gang Leader

The U.N. Security Council on Friday unanimously approved sanctions against powerful Haitian gang leader Jimmy “Barbecue” Cherizier, whose members are blocking a key fuel terminal.

Banorte Pulls Out of Bidding for Mexico’s Banamex

Grupo Financiero Banorte is withdrawing from the bidding race to acquire Citigroup’s Mexican retail banking unit, Banamex.

Mexican President Calls for Restored Relations Between U.S. & Venezuela

Mexican President Andrés Manuel López Obrador on Friday called for the United States to restore relations with the government of Venezuelan President Nicolás Maduro.

Complete editions of the Latin America Advisor are delivered on a biweekly basis to members of the Dialogue’s Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.

ABOUT THE LATIN AMERICA ADVISOR

The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

Subscribers

Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

asia & Latin America

education

energy transition & Climate

Migration, Remittances & Development

peter d. bell rule of law

cities

Women & Girls