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Third
In the midst of the intense debate regarding the impact that new pension withdrawals might have on inflation, while the proposal advances in its processing in Congress following the seven parliamentary initiatives that point in that direction were merged into a single projectthe fact that will be voted in general next week by the Constitution Commission of the Chamber of Deputies, the INE reported this morning that the CPI soared 1.9% in March, reaching its highest increase since 1993.
After knowing the figure, the former Minister of Finance, Ignacio Briones, reiterated that the greatest pressure on prices comes from the rise in domestic consumption and reinforced his position regarding the negative effect that possible transfers from the AFPs would have on the CPI.
“March inflation: 1.9%. In 3 months we accumulate the inflation of a whole year (normal). What was not a topic before, this year will be central”Briones said through his Twitter account.
“External component? Yes. But the main cause is still internal due to excess spending. Retreat flat earthers will continue to make the problem worse?”he added.
March inflation: 1.9%. In 3 months we accumulate the inflation of a whole year (normal). What was not a topic before, this year will be central. external component? Yes. But the main cause is still internal due to excess spending. Flat earthers of the withdrawals will continue to worsen the problem?
– Ignacio Briones (@ignaciobriones_) April 8, 2022
Another former head of the Treasury who also reacted to the figure was Nicolás Eyzaguire, who pointed out that “I think that Parliament has not yet internalized the problem that inflation is going to generate in terms of popularity.”
Government
Earlier, the Minister of Finance, Mario Marcel, ratified the government’s position on the inconvenience of advancing in new recalls in the current inflationary context.
“It is a worrying reason, an additional reason not to add more fire to the price fire,” he said.
With the data for March, inflation in twelve months climbed to 9.4%, a record not seen since October 2008. Between January and March, prices accumulate a rise of 3.4%.