Argentina's Deputy Economy Minister Says Inflation Is No Longer the Problem

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On 20 August 2026, Argentina’s Deputy Economy Minister José Luis Daza stated at a Council of the Americas conference that inflation was no longer a primary concern for him, citing a downward trend in rates. This assertion followed the release of July data by INDEC, which reported a monthly inflation rate of 2.1 percent and a 33.8 percent increase over the previous twelve months. Daza tied the future economic outlook to a pending bill in Congress designed to grant the Banco Central de la República Argentina formal independence from the executive branch. While the minister characterized the potential passage of this law as a 'confidence shock,' the bill had not yet been enacted into law at the time of his remarks.

Consequences

The impact of the proposed central bank reform remains speculative, as the bill's approval is a forecast rather than a current reality. Should the legislation pass, its success would be measurable through the narrowing of Argentina’s country risk spread, as well as shifts in the peso's value and central bank reserves.

Sources

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