“There’s no method for salaries or individuals’s incomes to adapt at that pace,” Mr. Carbajo mentioned.
Mr. Milei’s spokesman, Manuel Adorni, mentioned accelerating inflation was the inevitable consequence of lastly fixing Argentina’s distorted economic system.
“We’ve been left with a large number of issues and unresolved points that now we have to start out addressing,” he mentioned. “Inevitably, we’ll undergo months of excessive inflation.”
Mr. Milei has warned Argentines that his plans to shrink the federal government and remake the economic system will damage at first. “I want to let you know the uncomfortable reality somewhat than a cushty lie,” he mentioned in his inaugural tackle, including this previous week that he needed to finish the nation’s “mannequin of decline.”
Argentina’s economic system has been mired in disaster for years, with persistent inflation, rising poverty and a forex that has plunged in worth. The financial turmoil paved the way in which to the presidency for Mr. Milei, a political outsider who had spent years as an economist and tv pundit railing in opposition to what he referred to as corrupt politicians who destroyed the economic system, typically for private achieve.
In the course of the marketing campaign, he vowed to take a sequence noticed to public spending and rules, even wielding an precise chain noticed at rallies.