This Thursday, the Government announced changes in its annual inflation projection. Thus, what was estimated between 38% and 48%, rose to 62%. This occurred within the framework of the 2022 Budget update, despite the fact that it has not yet been published in the Official Gazette.

The estimate that had been agreed with the IMF three months ago, at the beginning of the economic program approved by the board, was left behind after the inflation peak in March, April and May. Despite the new update, the inflation range proposed by the Ministry of Economy still remains about 10 percentage points below the latest Survey of Market Expectations (REM) prepared by the Central Bank among consultants, banks and investment funds.

At the same time, the Palacio de Hacienda modified the GDP growth numbers to 4%. Martín Guzmán accepted the difficulties, especially for the informal employment sector, but considered that the updating and renegotiation mechanisms of the unions will prevent a collapse in the purchasing power of income.