Devaluation Of Argentine Peso Disrupts Gov't Plan To Slow Down Inflation - Central Bank

The devaluation of the Argentine peso in the wake of the shock presidential primaries has interrupted the steady reduction of inflation, with consumer prices expected to increase through next month, the head of the country's Central Bank told reporters Tuesday

BUENOS AIRES (UrduPoint News / Sputnik - 20th August, 2019) The devaluation of the Argentine peso in the wake of the shock presidential primaries has interrupted the steady reduction of inflation, with consumer prices expected to increase through next month, the head of the country's Central Bank told reporters Tuesday.

"We must be realistic. The recent jump in the exchange rate has already had a negative impact on prices, it will interrupt the process of lowering inflation [that has been ongoing for] the last four months. Inflation, unfortunately, will accelerate in August and September," Governor of the Central Bank Guido Sandleris said, without mentioning specific numbers.

After slowing down for four consecutive months, inflation in Argentina came out to 2.

2 percent in July, according to the National Institute of Statistics and Census report.

On August 12, Argentina's currency dropped from 46.6 pesos to 65 pesos against the US dollar, while the national stock market took 38 percent dive, reaching a historic low. In the following days, the country's main stock index, Merval, tried to rebound but managed to win back only a few lost percent. The dollar on Friday night was worth 57 Argentine pesos. As of Tuesday, the rate is 54.84 Argentine pesos against the US dollar.

This economic tumble came as news about the opposition's shock victory in the primaries emerged. Argentina's presidential election is set for October.