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Inflation expectations in Argentina for the next twelve months: 29.5%

Saturday, May 21st 2011 - 09:40 UTC
Full article 13 comments
Guido Sandleris, Torcuato Di Tella University CIF Director Guido Sandleris, Torcuato Di Tella University CIF Director

Inflation expectations for the next twelve months in Argentina dropped to 29.5% in May from 30.3% in April according to the latest report from the Financial Investigation centre from the Torcuato Di Tella University, CIF.
This is the first time in twenty months that the index is below 30%.

The average of inflation expectations remained at 25% for the third month running according to the Torcuato Di Tella University.

“The expected inflation is slightly heterogeneous if we analyze low and high income groups… Those with higher incomes expect inflation of 25% while those belonging to the group of lower income expect prices to rise 24%”, said Guido Sandleris, CIF Director.

“On analyzing the different regions of the country, inflation expectations are homogeneous: 25% in Buenos Aires City, in metropolitan Buenos Aires and in the rest of the country”, added Snadleris.

According to Argentina’s official statistics office, Indec, inflation in the last twelve months was 9.7%.

Nevertheless and in spite of the close links between the government of President Cristina Fernandez de Kirchner and organized labour, the powerful metal workers union, UOM, and the chamber of industries from the sector agreed with the Ministry of Labour blessing, a salary increase of 25% to be implemented in two sequences: 15% as of April and the other 10% next July.

The percentages are accumulative to which must be added a fixed sum of 900 Pesos: 300 Pesos next January; another 300 Pesos in February and the remaining 300 Pesos in March 2012.

Both sides also agreed a basic starting payment of 3.200 Pesos which is equivalent to 800 US dollars.

UOM represents an estimated 300.000 metal industry workers in Argentina and is considered a “reference union” for other salary arbitrations.

 

Categories: Economy, Argentina.

Top Comments

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  • GeoffWard

    25% this year, 30% next year - fuelled further by the fire of the union '25%plus' agreed wage claims..
    And, on top of this, suppression of international trade.

    Hard to tell which is worse, default on international debts (world pariah nation) or hyper-inflation.
    . . . . . . Perhaps one leads to the other in an ever-increasing spiral.

    I can see no reason why certain Argentinean posters to this site are up-beat about their economy.
    All I can see is a future stacked against the country and its people.

    Am I wrong?

    May 21st, 2011 - 07:11 pm 0
  • I

    it's about time the Argentine central bank charged a fee on all foreign exchanges, I always wonder how come when sending U$ dollars anywhere we pay such a high percentage in fees, I know we can stop inflation if we stoped foreign currency from underminding the local economy. I don't know too many Argentine who buy their food with U$ dollars, that's right the U$ dollars buys Argentines good old US labour, well payed to.

    May 21st, 2011 - 08:00 pm 0
  • Britishbulldog

    Why is inflation in Argentina this high?

    May 22nd, 2011 - 02:01 am 0
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