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President Javier Mali is pausing his shock therapy plans as he tries to maintain popular support amid Argentina’s dire economic situation, even if it means roiling markets, Bloomberg reports.
This month, the Liberal leader delayed increases in fuel taxes and utility prices that together would have added 1.2 per cent to monthly inflation.
Highly subsidised rail fares have been frozen since May and bus fares have remained unchanged since April.
The delays are said to highlight the way Miley is trying to repair a damaged economy without driving up already sky-high inflation.
New data on Friday is expected to show that the monthly rate of consumer price growth rebounded after five consecutive declines.
Experts say Argentina’s government is so focused on achieving a sustainable slowdown in inflation that it is beginning to lose sight of other goals.
Any change in the exchange rate would hurt the president’s popularity among the middle class, which is central to his agenda, the report said. In addition, electricity bills for the middle class more than doubled in June.
Argentina’s sovereign bonds are the worst performing among emerging market peers this month.
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