Argentina and Venezuela with highest (and climbing) inflation in South America

Monday, July 12th 2010 - 03:52 UTC

Full article 27 comments

Prices in Argentina keep climbing in spite of Indec’s manipulation

While most of South America is undergoing a deceleration of consumer prices Argentina and Venezuela are the only countries to experience a significant increase in inflation, making it one of the main concerns or public opinion.

On average in the first half of 2010 in most South American countries inflation was in the range of 2% (in Uruguay it’s 3.09%) which contrasts with Argentina and Venezuela.

In Argentina according to the controversial percentages managed by the Kirchner intervened Indec (Statistics Office) inflation between January and May reached 5.1%, however private estimates argue that it’s much higher and that in the first six months it was above 10%.

Prospects are not encouraging since after a relatively quiet second quarter, in Argentine terms, an avalanche of price increases are expected for the second half given the recent round of salary agreements.

The only comfort for Argentines is that the situation in Venezuela is worst. In June inflation in the land ruled by President Hugo Chavez reached 1.8% (lower than the 2.6% for May) but in the first half of the year accumulates 16.3% and 31.3% in the last twelve months.

This makes Venezuela the country with the highest inflation in the region for the fifth year running in spite of a strict government control of prices and the foreign exchange rate, effective since 2003.

Categories: Economy, Politics, Argentina, Latin America.

Tags: Argentina, Indec, Inflation, Venezuela.

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avargas2001
Wow! this sounds interesting, I wonder how this inflation rate compares to the time prior to the first election of Precident Hugo Chavez, is this report showing a fair scrutiny of the data shared ? or is it simply trashing any validity to Venezuela's economic progress, the world economy is droping like a stone, was Venezuela supposed to set the exemple ?
Jul 12th, 2010 - 05:18 am 0
Forgetit87
Reports on Argentina from this website are definitely biased against the Kirchners and perhaps the whole Argentine nation. Well...

avargas,

I've just checked IMF data on Venezuela from 1995-2010 (2010 is a forecast). In 1995 inflation was at 60%. In 2009 at 27%; the average for this year is expected to be at 29%. From 1999 - the year Chávez took office in - until 2001 inflation decreased, but raised again the following year. It seems to have stabilized since them in the 20-30% range.
Jul 12th, 2010 - 09:14 am 0
Beef
How on earth anyone can come on here and argue that Chavez's economic policy is progressive and sound is amazing. Ignoring inflation and the fact that Venezuela is in recession for a moment. We have a county that is a major hydrocarbon producer yet is experiencing power shortages. Venezuela was a major coffee producer but since nationalisation of the coffee industry the country has now become a net importer of coffee.

There is no economic progress in Venezuela, only decline caused some outdated and flawed socialist economic models that are driving a potential great country to its knees.

Add into the mix the the restraining of free speech and increasing abuses of human rights and it is clear that Chavez is turning Venezuela into the North Korea and Zimbabwe of South America
Jul 12th, 2010 - 04:37 pm 0

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