Argentine consumers’ inflation expectation for next 12 months soars to 33.7%

Friday, October 15th 2010 - 06:19 UTC

Full article 9 comments

Retail food prices are the most sensitive

Inflation expectations in Argentina for the next twelve months, based on the October’s Inflation expectations poll from the Torcuato Di Tella Business School Finance Research Centre reach 33.7%.

“At national level inflation expectations among consumers for the next twelve months, based on the average replies collected, stand at over 30% after having remained stable at 25% for the last five months, which means we are facing the historic maximum of the series”, said Guido Sandleris from the Finance research centre.

Sanderis pointed out that “expected inflation soared to over 30% in metropolitan Buenos Aires and in the rest of Argentina with the exception of the capital Buenos Aires with 25%”. However if the average replies are taken into account in Metropolitan Buenos Aires the inflation expectation is 34.4%, in the rest of Argentina, 33.9% and in the federal capital 30.8%”

The gap between the forecasts of analysts consulted by the Argentine Central Bank, particularly regarding the retail prices index and inflation expected by public opinion stands at 18.8 percentage points. The size of the gap is evidence of the lack of credibility in the Argentine government official calculation of inflation. “If we take the average, the gap advances further to 20.2 percentage points”

Sanleris said that expected inflation by the lower income brackets stands between 25% and 30%, while it remains at 25% for the higher income bracket”.

The financial expert from the Torcuato Di Tella concludes that “the jump in inflation expectations reflect the worsening inflationary dynamic that for some time now is being experienced by the Argentine economy”.

Categories: Economy, Argentina.

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stick up your junta
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some things go up a lot
Oct 15th, 2010 - 06:29 am 0
fredbdc
Our friend Axel is protesting today for yet another raise. I wonder why they are protesting if everyone's pay keeps going up and up? If they think it will be 33% next year I wonder what it will turn out to be, 50%? That would make it the most in the world I think.
I heard restaurants are already more expensive in BA than in Miami, hmm that happened in the 90s right before hyper inflation and a huge crash. Wonder what is going to stop it now?
Oct 15th, 2010 - 01:55 pm 0
axel arg
Moron FREDBDC: Dont we so concerned about my salary, i will receive another rase in yanory or maybe before, like most people, beside, if you take as serious the perception that most us have about inflation, that shows how ignorant and clown you are, on the other hand, moreover the inflation level, the sells in the supermarkets, and shoppings keep on increasing, that shows that we dont loss our capacity to consumme.
So dear fred, keep on dreaming about a new crash for my country, it's free, but your desperate wish will have to wait.
Beside, dont be so misserable, you dont need argentina to have a new crisis to buy a house in buenos aires, if you have no money, you just can't do it, perhaps what you do, is what we call in argentina, shiting higher than the ass, it would be something like, spending more money than what you really can.
Oct 15th, 2010 - 05:00 pm 0

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