MercoPress. South Atlantic News Agency

February inflation in Argentina, 0.7%; private estimates double that percentage

Domestic Trade Secretary Guillermo Moreno: only one inflation in Argentina

Inflation in Argentina advanced 0.7% in February over the previous month pushed mainly by increases in the clothing sector (2.2%) and leisure activities (3.5%), according to the official Indec National Statistics Bureau. During the first two months of the year, the consumer prices index accumulated 1.5%.

Wholesale prices rose 0.9% in February and 2.2% in the first two months of 2011. Meanwhile, construction-related costs soared 1.6% in the second month of the year and 3.6% during the first two months.

As has been happening for several years now, the official Indec data is quite distant from private estimates which range between 1.2% and 1.7%. However private consultants have been to all effects banned from making public their findings following on a decree from the government of President Cristina Fernandez de Kirchner demanding they reveal the parameters and data they use to elaborate the indexes.

If they refuse and proceed to make public their findings they are heavily fined. This happened with respected Finsoport consultants who were fined 50.000 Argentine pesos (12.500 US dollars) by the Domestic Trade Secretary Guillermo Moreno. Apparently other economic think-tanks that until now regularly made public their findings have also been fined for not reporting “the methodology they use to estimate inflation”.

Finsoport revealed earlier this week that February inflation was 1.7% and advanced that at the current rate the March index could be as high as 2.1%.

Another consultant Buenos Aires City, which is managed by Graciela Bevacqua, the former head of Indec who was sacked by former President Nestor Kirchner in 2007 for refusing to ‘manipulate’ index numbers, estimated February inflation at 1.5% and 3.6% in the first two months of the year.

As to the two basic baskets which help measure indigence and poverty in Argentina, according to Indec the Basic Food Basket registered a slight increase of 0.02% in February and stood at 580.26 Pesos, equivalent to 145 US dollars. Meanwhile the Total Basic Basket rose 0.5% to 1,271.51 Pesos equivalent to 318 US dollars.

According to Indec consumer prices in 2010 were up 10.9% although private estimates, including the unions that support the Kirchner administration, consider more realistic a ‘floor’ of 25%. For 2011, electoral year, the administration of Cristina Kirchner has estimated consumer inflation at 8.9% while private consultants triple the percentage.

As happens every month that the official inflation is announced, Indec staff surrounded the building symbolically holding hands, with the support of political, student and workers groups, to protest the January 2007 intervention which converted a once highly respected institution into a discredited manipulation of percentages office, and the laughing stock of academia and the business community (behind doors).-