MercoPress. South Atlantic News Agency

Argentine April inflation 2.16% and 23.45% in 12 months according to ‘Congress-index’

Deputy Bullrich: People’s sensation is real: prices are rising at an alarming rate”

April inflation in Argentina averaged 2.16% accumulating 23.45% in the last twelve months, --more than double the official index-- according to the monthly release from opposition members of Congress based on information from private economic consultants.

In a press conference in Congress Deputies Ricardo Gil Lavedra, Juan Pedro Tunessi and Patricia Bullrich again did not reveal the names of the private consultants which help with the “Congress-CPI” since they are exposed to sanctions and fines from the Interior Commerce Secretary.

The announcement comes a day before the official index from the Stats and Census Institute, Indec, is made public and which is questioned from the IMF to the Argentine unions because it is believed to be manipulated to the government’s interests and below the two digits. A situation which started in 2007 when then President Nestor Kirchner replaced the professional staff from Indec with political cronies.

According to Indec, consumer prices in February were up 0.7% and 9.7% in the twelve months; and in March, 0.9% and 9.8%. These percentages are at least half the so called ‘Congress-index’.

“This is nothing new, we are all feeling inflation, which is even higher in the informal economy with price increases of 30% and 40% for winter clothing” said Bullrich while Gil Lavedra compared the Argentine index with those of other Mercosur members and Chile, below 1% in the month.

Deputy Tunessi said that “while inflation keeps increasing the economy is slowing down” and even when there is no recession, the economy can only be expected to pick up at the end of the year.

Tunessi also warned that the Argentine peso is overvalued, “we are with a US dollar at the highest point in over a decade, which makes Argentina ‘uncompetitive’ to export”, so “it is really regrettable that the government does not acknowledge true inflation and addresses the issue”.