INFLATION STAYS DOWN
Last month’s inflation was 1.9 percent, the INDEC national statistics bureau announced on Wednesday, thus increasing 17.3 percent so far this year at an annual rate of 36.6 percent. The monthly inflation figure thus remained below two percent for the third month running. The leading culprit in this winter holiday month was Recreation and culture (4.8 percent) while a deflation of 0.9 percent was posted for Garments and footwear, a trend seen as encouraged by increased imports. Core inflation (excluding regulated and seasonal prices) was 1.5 percent. Despite the dollar rising almost 14 percent in July, the INDEC figure did not clash with other estimates since the Central Bank’s REM (Relevamiento de Expectativas de Mercado) survey pooling the projections of over 40 consultants had forecast 1.8 percent, only fractionally above the previous figures of 1.6 and 1.5 percent for June and May respectively.
‘SABOTAGE AND GENOCIDE’
President Javier Milei delivered a 23-minute nationwide broadcast on the cusp of last weekend in which he announced a bill penalising members of Congress voting for legislation which incurs a fiscal deficit, also justifying his vetoes of recent parliamentary initiatives which would increase public spending on pensions, universities and hospitals. These could only be funded by “more taxes destroying economic growth or more debt causing genocide against our youth, grandchildren and future generations or more inflation especially hitting the most vulnerable sectors that they (Congress) say they defend,” fired off Milei (accompanied throughout by Economy Minister Luis Caputo), also accusing the legislators of “sabotage” and “obstruction.”
CAPUTO ON DEFENSIVE
Economy Minister Luis Caputo on Thursday defended his latest move to remove pesos from the market, maintaining that the government’s aim was to keep the money supply unchanged while attributing recent volatility to pre-electoral nerves. On Wednesday the government placed a bond issue to renew debt to the tune of 15 trillion pesos but the banks only offered nine trillion. The Treasury then decided to absorb the outstanding six trillion by again raising statutory reserve requirements and using savings from the fiscal surplus in order not to alter the money supply, thus easing pressure on the dollar – a move questioned by many financial analysts and market operators. Caputo defended his monetary policy as “simple, transparent and rules-based.” While a floating currency remained within the band, the Central Bank neither bought nor sold dollars, he explained.
UNIVERSITY PAY HIKE
Following a nationwide university strike last Monday, the Human Capital Ministry announced a 7.5-percent pay rise for national university lecturers and non-academic staff between September and November, assuring that the increases were in line with those granted to the rest of the public administration. The measure includes a 3.95 percent hike at the end of this month, as well as a one-off lump sum of 25,000 pesos for non-academic staff and university teachers with exclusive dedication as a complementary payment with smaller sums for part-timers. The increases came with a reminder that last year university spending had been boosted to the tune of over 23 billion pesos whereas it had not been updated throughout the year of 2023 under the Alberto Fernández presidency despite over 200 percent inflation that year. Meanwhile, clashes were seen at the weekly pensioners’ protest.
NEW RIGI UPTAKE
The government last Tuesday approved its seventh project under the RIGI (Régimen de Incentivo para Grandes Inversiones) investment scheme for major investments, an input of US$250 million taking the total up to US$12.835 billion. Economy Minister Luis Caputo disclosed the news via his social networks. The project, jointly presented by PCR (Petroquímica Comodoro Rivadavia) petchems and ACINDAR steel manufacturers, is a wind farm located in Olavarría, Buenos Aires Province and producing 180 megawatts of renewable energy. The same partners have another wind farm and solar plant, San Luis Norte located in that province with a potential total output of 112.5 megawatts. The other six projects, out of a total of 14 thus far submitted, include a photovoltaic solar farm in Mendoza, the Vaca Muerta Sur oil pipeline running 437 kilometres to the port of Punta Colorada in Río Negro Province, a plant to liquefy natural gas (LNG) in the same province and two lithium projects in Salta and Catmarca. Of these, the pipeline (US$2.486 billion), the LNG plant (US$6.878 billion) and Rio Tinto’s lithium project in Salta (US$2.724 billion) are by far the most important investments.
KILLER FENTANYL
The death toll from the contaminated fentanyl produced by the HLB Pharma and Ramallo labs was moving ever closer to treble digits as the week progressed with 90 fatalities already reported on Tuesday. With at least 1150,000 capsules of the opioid already confiscated, the court raid extended just before last weekend to the province of Córdoba where further confiscations were made at the Vélez Sarsfield clinic. La Plata federal judge Ernesto Kreplak confirmed last weekend that the death toll from the opioid contaminated with multi-resistant bacteria has yet to peak even while reporting that all stocks of the tainted analgesic have now been seized. Kreplak has charge of the case because the first fatality was reported at the Buenos Aires provincial capital’s Hospital Italiano, but the government has moved for his recusal. In the United States where an "epidemic of illegal use" causes some 50,000 deaths annually, fentanyl has been converted into a major issue by US President Donald Trump. While a couple of dozen people are suspected in the case, no arrest has yet been made with the "primary and direct responsibilities" still being investigated, according to the judge. Last Thursday in Congress deputies proposed activating an investigative commission to probe the tragedy. The initiative crossed party lines with PRO’s Silvina Giuduci and Peronist Pablo Yedlin spearheading a call backed by the Unión por la Patria, PRO and Democracia para Siempre (opposition Radicals) caucuses.
MILEI UNREPENTANT
President Javier Milei last Monday refused to remove his hostile post against the autistic child Ian Moche, informing the courts that his X account is personal and thus does not represent the presidency as well as arguing that it fell under his right to the freedom of expression. The former argument has already been refuted in the cryptocurrency $LIBRA fraud case by the prosecutor Oscar Julio Gutiérrez Eguía, who ruled that Milei’s account does represent him as a President. Milei's latter argument was contested by Moche’s lawyers pointing out that “the superior interest of the child entitles restrictions of the political freedom of expression” as well as causing him “irreparable, grave and imminent damage.” The President further insisted that the real target of his hostile tweet was the journalist Paulino Rodríguez (whom he did not name) and not the child. Ian’s mother Marlene Spessio reacted the same day, saying: “Posting the photo of my son saying that his autistic condition was fake was horrible” and “The freedom of expression has its limits and those limits are attacking [people].”
CONICET THANKS SUPPORT
A fortnight of intensely followed underwater exploration ended last weekend with CONICET national research council relaying via its robot submarine the simple message: "Thanks for your support. " The next day CONICET workers started strikes and demonstrations nationwide to reject budget and pay cuts. The next underwater expedition of the team of 37 scientísts will be off the coasts of Uruguay and southern Brazil starting in late September and continuing until the end of October.
HITMEN MISTAKE TARGET?
Rosario hairdresser María Florencia González, 37, was shot dead last Saturday night and her 15-year-old son was hit in the leg when they went around the corner to buy soft drinks. There they were intercepted by two or three men who gunned them down before taking flight. The mother was killed instantly while her son was hospitalised with a broken leg. Investigators are not ruling out an error by hitmen since the day before a suspected bunker of drug-traffickers in that area had been peppered with the same bullets used in the weekend slaying. The prosecutor’s office confirmed that the victim had no criminal record or points of contact with gangs. Her death was Rosario’s 79th murder in 2025, which sent alarm-bells ringing since last year’s total at this stage was 66.
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