MercoPress. South Atlantic News Agency

Argentine May inflation 1.71% and 23.85% in twelve months, according to private estimates

Gil Lavedra, “inflation has become the central problem of the Argentine economy”

Argentine opposition lawmakers unveiled on Monday the inflation index based on the analysis of nine private agencies, which in May reached 1.71%. The unofficial consumer price index has accumulated 23.85% in the last twelve months, twice the volume registered by the Indec national statistics bureau.

The evaluation was presented by national lawmakers Patricia Bullrich (Unión por Todos), Eduardo Amadeo (Frente Peronista), Paula Bertol (PRO), Ricardo Gil Lavedra and Juan Pedro Tunessi (UCR) and Ramona Pucheta (MIJD).

Gil Lavedra said that inflation has become the “central problem of the Argentine economy” and its deteriorating effects can be easily seen. He added that since the Indec stats office was intervened by the government of former President Nestor Kirchner replacing professionals with political cronies, “real inflation in the country has soared 132%”.

“The government has lost course based on erroneous policies. May’s inflation rate is the highest in the month for the last ten years” sail Gil Lavedra.

Eduardo Amadeo claimed it is the government that “is not defending the Argentine Peso”. He added “the enemies of this government are not the opposition or the corporations as they preach, but rather inflation which hits the most the vulnerable, the poor”.

Finally Paula Bertol (Pro) argued that inflation is devouring the “competitive dollar” which was well geared at the beginning of the Kirchner years, promoting exports.

“While in Uruguay inflation in May was 0.39%, in Brazil, 0.36% and in Chile zero, Argentina has inflation in dollars, which simply bites into any possible trust on our currency” said Bertol insisting that the mix of inflation in dollars and pesos also increasingly erodes the purchasing power of consumers and limits exports.

The official inflation rate for the month from Indec is scheduled to be released on Tuesday and is estimated to be kept before the manipulated target of two digits.

Opposition lawmakers make public the average of private consultants’ estimates because these organizations have been fined for releasing percentages that “do not comply with government guidelines to calculate the increase in prices”.

To avoid the challenge the Argentine Congress “Freedom of expression” committee every month makes an average release from private consultants, which is recognized by labour pay contracts and even court rulings.