Two-digit inflation in Argentina has reached 90 consecutive months, according to economist Carlos Melconian who added that since 2001 the prices’ increase in the country has averaged 500%.
“In the 500% index, we have food and beverage that ballooned 1000%. The 500% is an average of food prices and frozen public utilities rates (power, gas, water)”, said Melconian who is running for office in the coming October mid term election for an opposition grouping.
“What I am saying is not out of politics or related to the fact I’m running for office” added the economist.
“Inflation hits hard, people feel it in their pockets and they are far more sensitive to it that we can imagine. They don’t need to convince me about inflation: I’ve been assessing prices as a consultant for the last fifteen years”.
Melconian also said that the current round of salary negotiations in which the average increase has a floor of 25% is a clear indicator of inflation and the only way to overcome the pernicious phenomenon is “political determination”.
“Bringing down inflation is a necessary condition, but not sufficient, because it demands political determination, consensus and negotiations”, insisted the economist.
In Argentina the ‘manicured’ official inflation from the stats office, Indec ranges 11% annually which is less than half the so called Congressional index or from some provincial government transparent stats offices and stands in the range of 26%.
Likewise the latest inflation expectation index from the prestigious Di Tella University in Buenos Aires shows that Argentines are looking ahead for the next six months to an annual inflation of 30%.