Wednesday, May 15th 2013 - 07:32 UTC

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

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.

Minister Moreno manipulates prices and stats

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.
 

4 comments Feed

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1 Anglotino (#) May 15th, 2013 - 09:06 am Report abuse
As this index is supposedly a lie, no pro-CFK poster can argue this is a good thing...... supposedly it is the government lie... I mean figure that is true!

I wonder what it will say?
2 manchesterlad (#) May 15th, 2013 - 03:23 pm Report abuse
In 2003 Nestor fired the independent statiticians at INDEC & moved his own people in to control the inflation figures. Since the bonds that most of the investors accepted at 35% were linked to inflation, the official rate saves the government millions in interest payments every month

Even the kamporistas will give you a wink & say 'yes we know the INDEC figures are a joke' but they think it's acceptable because it's for the cause & 'La Patria'
3 Anbar (#) May 15th, 2013 - 11:10 pm Report abuse
I thought they didnt talk about Inflation in Argentina?

Rule #1: There is no Inflation
4 yankeeboy (#) May 16th, 2013 - 10:20 am Report abuse
Why don't they just say there is no inflation? It is just as believable.
I don't see them changing anything by the IMF deadline eom Sept.

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