MercoPress. South Atlantic News Agency

Argentine congress October ‘inflation index’: 1.49%, double the official rate

The panel of lawmakers makes the announcement

Argentine lawmakers announced Monday the so-called Congressional ‘inflation index” for October which they estimated at 1.49% and is well over double the official Indec index released last week, 0.6%.

The seven member panel representing the majority of opposition forces said that inflation in Argentina in the last twelve months had reached 23.10%, and emphasized that the use of Congress to release the information is because of “censorship”.

“We will continue with the release of the monthly index because there is censorship in Argentina and the ruling coalition refuses to hold a debate on the issue. However we feel they can’t keep avoiding the prices’ issue”, said Silvana Giudici from the Radical party.

Patricia Bullrich from the Civic Coalition said that although inflation index is down compared to the September index, it is well over double the official index from Indec’s 0.6%, which sounds a joke”.

“The inflation index in October was 1.49%, but in the last twelve months, 23.10%, and Domestic Commerce Secretary Guillermo Moreno continues to cheat on Argentines and is also generating increasing uncertainty about prices”, said Bullrich.

Lawmaker Eduardo Amadeo from the Federal Peronism argued that the official distorted index is making Argentina less competitive, helping to boost imports while it makes it more difficult for exporters”.

Inflation is biting into the competitive dollar that was prevalent in the first leg of the Kirchners administration, pointed out Hilma Ré from the Civic Coalition.

“This is what is happening to all of us every day and we don’t have to bring people to tell us” said lawmaker Ré adding that shopping and trying to fill the supermarket cart is increasingly difficult for all Argentines. No wonder then that there is a flight to the US dollar as a refuge currency”.

In the last four months, July to October, Indec inflation was 0.8%; 0.8%; 0.8% and the last month 0.6%, totalling 8% in the first ten months of the year.

The Congressional index on the other hand showed the following numbers: 1.6%; 1.87%; 1.89% and finally 1.49%.

This index was born following the Cristina Fernandez administration decision to fine all private consultancies which traditionally have revealed their own indexes and calculi. The congressional index is elaborated on an average of the consultancies delivered monthly to the Lower House committee.

In spite of the limitations, the index is widely used in labour contracts and by the Judiciary branch.