Wednesday, January 16th 2013 - 06:17 UTC

Last year’s official inflation in Argentina: 10.8%, less than half private estimates

Official inflation in Argentina was 1% in December ending the twelve months at 10.8%, which is less than half private agencies average estimate regularly released as the Congressional index, which was 2.1% and 25.6%, respectively.

Regulated transport prices experienced the highest increases

The government’s national stats office Indec also released the wholesale price index for 2012, which was 13.1% and for the construction industry 24.6%, very much in line with private estimates.

Public transport rates, under a process of ‘readjustment’ contributed strongly to December’s official index. Bus rates urban and sub-urban were up 12% and 7.4%, and trains, 12.2%. Thus transport together with communications jumped 3.8% in December over November.

Medical attention and health care was up 2.2% while leisure increased 1.3% and home upkeep and equipments 0.7% and clothing, 0.5%.

Food and beverage in December had the most modest increase 0.2% and Housing and basic services 0.1%.

However, globally services were up 2.2% in December over November.

A to wholesale prices the overall 13.1% increase is based on a 12.1% hike of primary goods; 13.8% for manufactured goods; 9.7% for imported goods and 6.5% for power. Likewise oil was up 14.6%; 25.3% non metal minerals mostly for the construction industry and 15.9%, vehicles.

In the construction industry which climbed 0.4% in December, the single item which most increased was labour, 32.1%; followed by materials, 14.8% and general costs, 25.4%.

The Indec inflation index has become quite symbolic from the moment that the private sector, unions and even the Judiciary take as reference the private estimates released under the Congress index. 


10 comments Feed

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1 CJvR (#) Jan 16th, 2013 - 09:37 am Report abuse
Don't lick the toads!
2 Shed-time (#) Jan 16th, 2013 - 09:53 am Report abuse
Red-card yet or more dragging-of-feet?
3 Optimus_Princeps (#) Jan 16th, 2013 - 02:12 pm Report abuse
It's a pathetic move to make less than a token effort to make accurate statistics. Sadly, even the inaccurate 10% inflation is worse than most countries in the world. When you get higher than 5% you see all the countries on that list are in a massive losers club for the crappiest governments in the world.

“There's inflation, but we are only going to lie a little less.”
4 yankeeboy (#) Jan 16th, 2013 - 02:37 pm Report abuse
3. What I have never been able to figure out and hopefully you can help me, in Argentina, when a store releases their mom or yoy sales growth, what exactly are they counting in that number?
For example let's say there was a 7%yoy growth in electronics sales, is that on top of the 25% inflation, the 10% inflation or is that gross sales volume in $ terms which means there is actually a huge decrease yoy?
I can't not figure out what they are actually measuring and what it means.
Thanks in advance!
5 Conqueror (#) Jan 16th, 2013 - 03:02 pm Report abuse
It's 36%. But then it's 136% certain that INDEC is lying. AS IT ALWAYS DOES!
6 yankeeboy (#) Jan 16th, 2013 - 04:50 pm Report abuse
and the real exchange rate just hit 7.5/1 U$

come on 10!!

I hope the Rgs have taken my advice and stocked up on Sugar and Laundry Detergent.

tee hee
7 Optimus_Princeps (#) Jan 16th, 2013 - 05:27 pm Report abuse
@4 yankeeboy I would like to be more familiar with the terminology you're using, and I should start learning, but I can relate my experience and hopefully that will in some way answer your question. For example, some items that used to cost double during Nestor's reign of retardation, now cost triple.

A laptop for a grand here, could by a laptop with double the RAM and a significant boost in processing power. A Gatorade that used to cost $5.25 (2009) costs $12 (2012). A lot of stores are closing, selling lower quality goods, and have their shelves poorly stocked. Clothing here costs about 80% more here. These are just some observations that you can use.

Argentinians that survive through a loopy economy form strong family units that invest all their resources in different ways to ensure that the whole family stays afloat when a new moron comes into power. The moochers that leech off of us just produce more children than they can handle and will suffer the consequences for their laziness.
8 toooldtodieyoung (#) Jan 16th, 2013 - 06:43 pm Report abuse
2 Shed-time

more dragging-of-feet!!! More if-you-do-that-again-you'll-be-sorry!! ( Just like the last time!! )
9 yankeeboy (#) Jan 16th, 2013 - 09:16 pm Report abuse
So here is a little problem and I wonder how it will be solved;
Peso is 7.65/1U$ today
What happens when Farmers sell their soy and are paid OVER 50% less in peso terms compared to THE REAL EXCHANGE RATE.

If I were them I wouldn't sell at that price. I would just wait until the gov't collapsed.
10 Simon68 (#) Jan 17th, 2013 - 03:39 pm Report abuse
9 yankeeboy (#)
Jan 16th, 2013 - 09:16 pm

I think that is what the Federación Agraria Argentina is suggesting that their affiliates do, in other words blackmail CFK into lowering the export taxes!!!!

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