MercoPress. South Atlantic News Agency
Inflation expectations in Argentina for the next twelve months: 29.5%
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%. Read full article
Comments
Disclaimer & comment rules25% this year, 30% next year - fuelled further by the fire of the union '25%plus' agreed wage claims..
May 21st, 2011 - 07:11 pm - Link - Report abuse 0And, 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?
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 - Link - Report abuse 0Why is inflation in Argentina this high?
May 22nd, 2011 - 02:01 am - Link - Report abuse 0I am no economist, and I do not know why inflation is so high. But, when unions insist on 25-30% pay rises about every 6 months, someone has to raise their prices to compensate. To me. this is a spiral which must end in disaster.
May 22nd, 2011 - 05:44 am - Link - Report abuse 0l agree, jerry
May 22nd, 2011 - 09:03 am - Link - Report abuse 0It depends on the political view of the author of papers on the topic.
May 22nd, 2011 - 11:11 am - Link - Report abuse 0In the UK the papers were written out of university 'social sciences' departments and, for 1979-2000, the Peter Ingrams research out of Surrey Uni was much respected.
But the slant was always that pay claim achievements *followed* price rises, and never kept up. This was, of course, the Thatcher/post-Thatcher period of curtailing the excessive powers of the unions.
The research always talks about correlation, and not about causality.
My pay experience and observation, from 1960-present, was that *union pay claims and achievements were the major driving force of rising inflation*. Obviously there were externalities, like the Oil Crisis, that also contributed.
Union literature is very 'quiet' about the 1975 period when there was industrial mayhem.
I'm no economist either, but inflation is a hidden/stealth tax. As the increased supply of money begins to chase the same number of goods, prices rise, and the average Argentine suffers. Poor and middle/ upper middle class Argentines are always the hardest hit by inflation, as the weakening peso makes the goods that many Argentines depend on more expensive. No wonder they demand more, but the more the Argentine government prints, the worse the situation gets, the more the Argentines will demand till it just explodes. dog tail dog situation.
May 22nd, 2011 - 05:08 pm - Link - Report abuse 0Note.
Printing Fiat Money = increasing money supply=losing purchasing power=money getting worthless=higher prices for all goods=Inflation.
You know when there is Inflation. The producers can hide in many ways. Great example is creating the same cake you always bought, but then you discover it tastes different (less milk, less eggs, etc etc) or it's the same cake, but with a hole in the middle and bought it for the same price as you did when fell in love with that delicious cake. If that doesn't work anymore, they simply raise the price, you get less and less, and by time it goes bust.
@7FidoDido,
May 23rd, 2011 - 04:06 am - Link - Report abuse 0l congratulate you. First post that l've read of yours that makes sense. Keep up the good work.
Oh well Argentina's Inflation may be high but at least it has a great growth rate of over 7% anualy comparable to China's growth rate unlike England which has a well below average growth rate among it's European members and a massive internal debt have a good look at your own brit back yard before it bites you in the arse.
May 23rd, 2011 - 08:58 pm - Link - Report abuse 0Tiger 9
May 23rd, 2011 - 10:03 pm - Link - Report abuse 0GDP 2010
7 United Kingdom 2,172,768
8 Brazil 2,172,058
22 Argentina 632,223
You can grow by big percentages when you are coming from such small beginnings.
@ and I congratulate you for finally trying hard for using your brain (what you normally don't use. I can read that by your comments you submit at subjects that you know absolutely nothing about, just like your cousin Geoff)
May 27th, 2011 - 07:54 pm - Link - Report abuse 0Cia World Factbook
GDP (purchasing power parity)
Brazil $ 2,194,000,000,000 2010 est.
United Kingdom $ 2,189,000,000,000 2010 est.
Poor Geoff, he desperate wants his island on top of the list.
Sorry Fido,
May 27th, 2011 - 11:20 pm - Link - Report abuse 0you didn't grasp that the article and Tiger were talking about Argentina.
My comment was that a 'big' percentage increase on a small amount can still be . . . a small amount.
And then there is inflation . . . .
Fido Dido, not only a fool, but also a nasty little worm. Somewhat like M_F. How did you know that Geoff is my cousin? Sneaky little devil aren't you?
May 28th, 2011 - 04:07 am - Link - Report abuse 0Commenting for this story is now closed.
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