MercoPress. South Atlantic News Agency

Argentina April inflation 23.67% in 12 months; partial prices-freeze to continue until October election

Minister Moreno manipulates prices and stats

Argentina’s inflation in April was 1.52% and 23.67% in the last twelve months according to the so called Congress index which is calculated by private agencies and was released on Tuesday.

The index was announced by members of the opposition belonging to the Freedom of Expression Lower House committee during a press conference that has become a monthly event and takes place a few hours ahead of the official Indec inflation index release, expected for Wednesday.

The Indec stats on Argentina’s inflation and GDP have been questioned and challenged both in the country and overseas including the IMF and other multilateral organizations.

The official inflation rate is normally half the average of private agencies that ceased to make them public after having been fined by the Secretary of Interior Commerce, Guillermo Moreno although this week several agencies were vindicated when an appeals court threw out the fines.

For example in the last five months beginning December the congressional index showed the consumer prices index as follows: 2.10%; 2.58%; 1.23%; 1.54% and April 1.52%. However for Indec, the list was; 1%; 1.10%; 0.50%; 0.70% and April can be expected to be below a half of 1.52%.

Meanwhile it was revealed by Ambito Financiero that the current prize freeze agreed by supermarket chains with Minister Moreno last February precisely to combat inflation, is going to be relaxed and the original list of 1.000 items cut to 500.

The less rigorous freeze is expected to last until October when Argentina is holding mid term elections to partly renew Congress and hopefully the government can continue with at least a working majority.

In the meantime some items have been released from the agreement and again according to Ambito Financiero, Moreno and the main supermarket chains (Jumbo-Disco; Carrefour, Walmart and Coto) agreed that in exchange for keeping the 500 items frozen and an overall price moderation, the coming salary round for the sector will be capped at 24%, and the import of some premium items will be extended with no limit.