The Argentine stock market is booming and on Thursday confirmed its seventh day running increase as investors are flocking encouraged by an imminent accord between the president Mauricio Macri administration and the IMF for a new loan package including reforms and a balanced budget in the next 18/24 months.
More Argentines are likely living in poverty now compared with last year, President Mauricio Macri said on Friday, as the country's economy slides toward recession following a currency crisis and a severe drought that harmed farm output.
Argentina’s economy will return to growth in 2019, President Mauricio Macri said on Wednesday, following a year marked by higher-than-expected inflation and a run on the Peso currency that many economists anticipate will lead to a recession.
Argentina's Consumer Price Index (CPI) rose by 1.8% in January 2018, after increasing 3.1% in December 2017, said the country's statistics office Indec. Despite the deceleration, the reading was higher than market expectations for the monthly consumer price inflation (+1.5%). The result was primarily influenced by higher costs for entertainment and culture (+3.5%).
Lawmaker and member of the Argentine Industrial Union (UIA) José Ignacio de Mendiguren said that inflation is not 40% as some private indexes say, but he pointed out that it is not around 24% as the government says either. “I think it is over 30%,” he said.
A reliable universally accepted rate of inflation in Argentina seems hard to come by although there are a battery of estimates, each of them arguing they are supported by statistically proven methods and thus the certainty of the indexes released.
Argentine nationalized energy company YPF warned on Tuesday that inflation in the country may keep rising and affect its results, a rare admission considering the company is controlled by a government known for playing down the problem.
Economy minister Hernan Lorenzino became the laughing stock of Argentina when a video was revealed showing him suspending an interview with Greek television arguing that Argentine inflation ‘is too complex’ and telling his aides, ‘I want to leave’. One of the aides then tells the Greek reporter that in Argentina ‘we don’t discuss inflation’.
Despite the efforts from the administration of President Cristina Fernandez that brokered a price freeze for another two months with the main supermarket chains of Argentina, March inflation according to the average of private estimates stood at 1.54% and 24.43% in the last twelve months.
Argentina ratified its controversial trade policy during the periodic country review at the World Trade Organization, WTO, arguing Argentina has grown sustainedly since 2003, as have social indexes supported by the strong and successful re-industrialization program.