Argentina's monthly inflation controversy again erupted with the official Indec figure for January marking 1,1% and 20.9% in the last twelve months, while the private consultants index, channeled through the so called Congressional index reached 2.08% and 35.21%.
The official figure, better identified as the National Urban Consumer Prices Index, IPCNu had a strong push from “Leisure” (4.6%), followed by “Healthcare” (1.9%) and “Other services” (1.9%). In the Leisure item “Tourism” jumped 11.4% and “accommodation”, 17.9%.
The congress index, with 2.08% inflation increase in January and 35,21% in the twelve months is closer to the index from the City of Buenos Aires (IPCBA) which reported 2% and 34.3%
For the first month of the year, the index is too high and shows a tendency which should be of great concern for consumers and obviously authorities, said lawmaker Pablo Tonelli, a member of the Freedom of Expression committee that makes the official Congress index announcement.
According to the Buenos Aires index, Tourism, Leisure and Culture reported the highest increase, 4.4%, but on the twelve months the most significant item was Food and Beverage with 31.6%. However the IPCBA points out that in the twelve month period a deceleration can be appreciated, with a 3.7 percentage points fall compared to the same period but in 2014.
Top Comments
Disclaimer & comment rulesThe only reason its not higher is because business is at a standstill. People blew their savings in Jan ( as they always do) so watch consumer spending drop like a rock for the rest of the year.
Feb 17th, 2015 - 11:31 am 0The only solution to stagflation is depression except Argentina will have Hyperinflation and Depression.
Throw in a couple state sponsored murders, pay day loans with the Chinese, and a goods storm or five and we've got something to amuse us for a year or ten.
:)
There is almost a Japanese style spending contraction afoot. Those that have been able to transition savings to convertible currencies are loathe to spend them.
Feb 17th, 2015 - 03:47 pm 0Everyone knows there's a massive devaluation coming so they will keep spending real money down to the bare minimum.
Feb 17th, 2015 - 04:02 pm 0Commenting for this story is now closed.
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