MercoPress. South Atlantic News Agency
Argentine private agencies July inflation 1.76% and 24.13% in twelve months
Argentine opposition lawmakers presented on Thursday July’s inflation index based in the analysis of nine private agencies, which showed a 1.76% increase against the previous month and doubles the official index from the government of President Cristina Fernandez. Read full article
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Disclaimer & comment rulesOnly 24%..? Exactly a year ago I encouraged my girlfriend to switch her cable TV package to a then 10% dearer one (DirecTV) because they offered BBC, CNN, etc. It has gone from 170 264 pesos (55% increase) and expecting another increase anytime. I think Argentina is headed for hyper-inflation again and yet another peso collapse. What will they name the new currency? May I suggest the Malvina? (doesn't that mean “bad wine”?)
Aug 10th, 2012 - 07:55 am - Link - Report abuse 0I don't trust these private agencies; look at the investigation into S&P. And don't get me started on these right wingers in Congress...
Aug 10th, 2012 - 11:15 am - Link - Report abuse 0@2
Aug 10th, 2012 - 11:57 am - Link - Report abuse 0Couldn't agree more. All inflation agencies have been completely discredited but these guys aren't the bad guys, no, not at all. The people who really stink in this situation are all of the shops owners (be they large or small) who lie about the prices in their shops and, when the random spot checks are asked to verify prices for inflation, they run around the shop floor (always just one step ahead) changing the price of every single item in the shop to reflect prices that are in-line with 24% inflation rather than the real 9.9% inflation rate. They then go back and change all these prices, once the inspector has left, to reflect the real 9.9% rate. It angers me so much as there is nothing more annoying than going into a shop half way through this process to find that some of the stuff you've picked up has been priced at the “lie” rate and others at the real rate.
I also have a massive beef with the vast majority of the country as they know that this is a very wide spread endemic of price-fixing as they can see shop keepers running around continually fixing the prices just before an inflation inspectors come in. I am just amazed that this has never been reported but I suspect that this is because 99% of the population are so scared of the corporates/church/inflation agencies or are all the love children of Macri and they just do not want it reported. This is a massive cover-up, I only hope that common sense will prevail and everyone will believe whatever the government says regarding inflation from now on, even if all the evidence points to a completely different set of facts.
All one has to do is enter a grocery store store at the bneginning of any given month.....record the prices of let's egg, beef, milk bread. Go back the beginning of the next month and do the same......then freak out at the increase. Been in a grocery store in Buenos Aires lately BK?
Aug 10th, 2012 - 12:27 pm - Link - Report abuse 0@2 BK dosent trust anyone unless they have a socilliaist background or are a corrupt government desperatly seeking to hide the true failure of their economic “model”.
Aug 10th, 2012 - 12:55 pm - Link - Report abuse 0The methods will be the same as used round the world using the Consumer Price index (CPI) and Producers price index (PPI). You can read all about these ”really difficult economic measures here.
http://www.investopedia.com/university/inflation/inflation2.asp
BK please explain why you dont believe them? What does an independent group of economists (many of thom are from Argentine Universities) have to gain from lying about the inflation. They would be as equally affected as anyone else by an economic collapse brought on by inflation.
“And don't get me started on these right wingers in Congress...”
Really did you read the lsit of congressmen involved? One of them is a peronist which you maintain (wrongly by the way) is a left wing organisation. Why would the right benifit from high inflation? Inflation hits hardets to those on fixed incomes i.e. the poor relient on benifits. CFKs economic policies are hurting the poor the hardest. Maybe you should take your head out from up the Vaca Locas culo and see the evidence staring you in the face. I believe the private estimates are probably to the high side but I trust there numbers much more than those of a government controlled organisation where all the economists were saked for doing a good job and repalced with government cronies who only report what they government tells them to. In my book that is state sponsered lieing and corruption.
B-K, the only “right-wing” politicians in the Freedom of Expresion Commission are Paula Bertol and Pablo Tonelli of the PRO, the rest are long term left-wingers, Patricia Bullrich is especially far left.
Aug 10th, 2012 - 01:52 pm - Link - Report abuse 0So as usual you are talking out of your a*se!!!!
Interesting article in Bs As Hearld today. It seems the central bank is having to selling dollars in order to prevent the pesos from devaluing further. The dollar closed on 4.60 pesos so it is creeping up.
Aug 10th, 2012 - 02:00 pm - Link - Report abuse 0Of course in the short term this isnt a problem, but it obviously shows that the inflation and other economic problems are causing the international money market to question the pesos worth. The questions is when will the dollars (dervied in Argentina from exports, tourism and investment, which are all in decline at present) run out? Especiialy when we know the dollars are also needed to service foreign debt payments and imports.
At least we now know the real reason we are not being allowed to buy dollars. Basically they are needed to propr up the failing pesos which has been caused by complete miss management of the economy by CFK.
http://www.buenosairesherald.com/article/108548/central-bank-restrains-dollar-price
@2 Would we care? Indec = sh*te in a leaky bucket. That's argieland for you. No honesty, no honour, no truth. Argieland is, to be fair, making a valiant to be lower than a snake's belly. How much lower can the cesspit of the world get? It's clear that nothing from argieland is worth having.
Aug 10th, 2012 - 02:26 pm - Link - Report abuse 0@3 “Inflation inspectors”? Are you having a laugh? Shopkeepers and a corrupt government conspiring to tell lies to mislead the people? A dictatorship in denial!
I read that as well. The balancing act that she must be going through. She is not going to be able to maintain the peso at this price and also maintain reserves to service foreign debt. Between inflation, maintaining the peso, the cost of imports in order to be able to export something other than agriculture and so many more issues. Argentina is circling the drain and will ultimately get caught in that vortex.
Aug 10th, 2012 - 02:30 pm - Link - Report abuse 0Kristina Kirchner is the owner of 2 hotels in the south of Argentina. One is called “Los Sauces Casa Patagonia” and the other one is called “Altos de Calafate”. Both in the Santa Cruz province where her dead (supposedly, or possibly hiding in Switzerland) husband Nestor comes from. The land that these hotels were built on was bought for literally pennies that (were actually federally owned lands) the Kirchners stole from the people of Argentina and built these million dollar hotels that charge over $1,000 U$ Dollars, YES USA DOLLARS per night. We have to all go to EVERY travel website and trash this criminal rechid Kirchners hotels so that NOBODY stays in them. They are the most corrupt and worst politicians to happen to this country ever! Trash them and their stolen wealth to pieces!!
Aug 10th, 2012 - 02:31 pm - Link - Report abuse 0www.ripoffreport.com/hotel/los-sauces-casa-pata/los-sauces-casa-patagonica-hot-4b187.htm
www.ripoffreport.com/plastic-surgeons/argentina-plastic-su/argentina-plastic-surgery-da-50cdb.htm
www.ripoffreport.com/argentina-afip-agenc/federal-government/argentina-afip-agencia-federal-f204d.htm
Spread the word about this banana republic so called “government”!!
Bs As Hearld is firing on all cylinders today. Sorry for taking it off topic but some very very good editorials.
Aug 10th, 2012 - 02:36 pm - Link - Report abuse 0http://www.buenosairesherald.com/article/108446/righteous-indignation-doesn’t-help-
http://www.buenosairesherald.com/article/108446/righteous-indignation-doesn’t-help-
Argentina calls itself a democracy...
Aug 10th, 2012 - 02:37 pm - Link - Report abuse 01/The system blatantly, unashamedly lies about the inflation rate -
inflation is not just a minor issue but something that really affects people - mostly their poorer voter base rather than their mortal enemy the middle class. They totally shit on their voters.
2/No one can question them without being roundly ridiculed at best and at worst pressurised through their business and lifetsyle. This suggests they have alot to fear from people exposing the system.
'look what sacrifices we make for Argentina, the people. You voted for us so dont you dare criticise us'
Its a VERY shallow democracy but the system seems to be proud of itself because
1/People can vote (not important how those votes are acquired)
2/Its not military rule
3/They dont throw their own people from planes or steal children
and thats probably it.
Democracy requires a bit more than that you arrogant, malicious tossers.
@12 I have said it many times before and will continue saying it. The problem will Argentina is the disease that is Peronism. Before Peronism Argentina was a stable and profitable country since it it has been a perptual vicious circle bouncing from one economic problem to the next.
Aug 10th, 2012 - 02:42 pm - Link - Report abuse 0End Peronism and its corrupt and outdated principles and Argentina can grow into the strong country it once was in the 1920s 1930s.
@12 - In Argentina people can vote? First it's obligatory to vote. If you don't vote, you have to prove you were at least 500 kilometers from home or you have to pay a fine!
Aug 10th, 2012 - 02:44 pm - Link - Report abuse 0And this is how people vote in Argentina:
http://www.youtube.com/watch?v=UyPC0SD0PGw
@14 Im not shocked in the slightest. and ebfore anyone says this was British and or Ameircan sponsered propganda it was a report by Al Jezzerai news.
Aug 10th, 2012 - 02:50 pm - Link - Report abuse 0Compulsory voting is not in itself a bad thing. Australia has the same system and I feel it should be obligatory, even if you put a blank ballot form in the box you are still voting.
@8
Aug 10th, 2012 - 02:57 pm - Link - Report abuse 0Errrr...yes, read again and I think you'll see that I am having a laugh
@14
Aug 10th, 2012 - 02:59 pm - Link - Report abuse 0Just to emthasis the point, an accademic research paper conducted by two Argentine accademics into vote buying in Argetnina.
http://lasa-2.univ.pitt.edu/LARR/prot/fulltext/vol39no2/Brusco.pdf
@13
Aug 10th, 2012 - 03:18 pm - Link - Report abuse 0Nationalism is the heart of the problem.
Peronism uses nationalism to manipulate and subdue the people. Without nationalism Peronism wouldnt exist. Peron cultivated it but now its sort of become a beast in its own right.
So while the middleclass hate Peronism they remain nationalistic and in doing so indirectly support Peronism because whilst they criticise the systems methods on internal issues they allow the -government- to behave in a dishonest and dishonorable way regarding -Las Malvinas- and to a degree the expropiation of YPF etc because they are -nationalistic- issues.
This means unfortunately the non Peronist voters will always lack the integrity to truly challenge the system. Sorry to say but moaning in El Clarin and banging a few pots in a plaza wont really challenge this arrogant, oppressive system.
The middle class have to forget about nationalism and focus on democracy and in doing so put alot more pressure on the system. Instead of saying -what is good for ARgentina? they need to say -what is good for democracy?-
18 Tobers (#)
Aug 10th, 2012 - 05:32 pm - Link - Report abuse 0Aug 10th, 2012 - 03:18 pm
Correct, 100%. What Argentina needs is at least ONE patriotic politician with enough charisma to attract enough votes to get rid of the peronist plague!!!!!
Both 2 British_Kirchnerist and 3 Welsh Wizard
Aug 10th, 2012 - 07:23 pm - Link - Report abuse 0have now proven that they don't live in Argentina and also haven't visited the country during the last several years.
Welsh Wizard's “who lie about the prices in their shops ” is WW's lie.
I have a stack of supermarket tickets from Mendoza dating from March 2009 through April 2012, which shows article no., name and price - not reporting observations, but documented real consumer prices.
I also have a spreadsheet with prices for articles I often bought, ranging 2 to 2½ years before April 2012.
Azucar Fronterita 1 kg: 6.50 . 3.79 . 2.95 . 2.35 . 2.15 . 1.89 . 1.99
Azucar Ledesma 1 kg: 6.99 . 6.50 . 2.75 . 2.59 . 6.50 . 2.75 . 2.59
Café Colombiana ¼ kg: 34.50 . 31.25 . 28.75 . 26.25 . 22.50 . 21.00 . 19.00 . 17.50 . 15.00
Caramelo Butter Toffees 150g: 8.05 . 7.15 . 5.15 . 4.79 . 4.49 . 4.15 . 3.59 . 4.15 . 53.67
Cigarillos Jockey Suave largo: 8.00 . 7.75 . 7.25 . 7.00 . 6.75 . 6.50 . 6.00 . 5.75 . 5.50 . 5.00 . 4.50
Jugo de Naranja (Baggio): 6.99 . 3.19 . 3.59 . 2.99 . 3.59 . 3.49 . 3.35 . 3.09 . 2.99 . 3.25
Leche semi descremada i pose: 5.99 . 5.66 . 4.79 . 4.69 . 4.39 . 4.50 . 4.10 . 3.95 . 3.80 . 3.60 . 3.30 . 2.65 . 3.20 . 3.10 . 2.59
Manteca Light 200g La Serinisima: 12.99 . 11.65 . 9.99 . 8.50 . 8.10 . 6.50 . 6.20
Shampoo El Vive 400 ml: 19.98 . 17.98 . 16.90 . 15.99 . 14.90 . 12.90
Estancia Mendoza Merlot/Malbec: 15.15 . 10.85 . 10.65 . 12.90 . 10.90 . 10.90 . 9.99 . 7.99 . 7.59
Pampero Pantalon de combate date: 2012.03 . 2011.10 . 2011.05 . 2010.04 . 2010.04
Pampero Pantalon de combate price: 168.00 .. 134.00 .. 105.00 ... 69.00 ... 65.00
20. By the table above it looks like the best investment in Argentina is to buy and hold diapers! 158% increase over 3 years is shocking
Aug 10th, 2012 - 07:47 pm - Link - Report abuse 0It is amazing people put up with this nonsense every 10 years.
Welsh Wizard
Aug 10th, 2012 - 07:51 pm - Link - Report abuse 0That was a wizard of a leg pull! :o)
Mind you, I bet Blind_Scottie_Kirchnerist already has it down as irrefutable proof of the agents against TMBOA.
LOL
24% in 12 months and still rising, lets for a minute think about that....24%.....12 months.....2% per month.....government seizing money printing company/oil company.....nationalization......import/export ban.....infrastructure failing....
Aug 10th, 2012 - 09:20 pm - Link - Report abuse 0HOLY 5HIT! Argtards you have one hell of a problem, look on the bright side at least you have a bronze medal so far.
I find it difficult to believe that the high inflation in Argentina is even an issue up for discussion. NO ONE CAN DENY IT, it is real.
Aug 10th, 2012 - 10:16 pm - Link - Report abuse 0Fortunately the cure is very simple, somewhat painful but easy and quick to carry out and the results come within 6 to 12 months.
MIlton Friedman said MV=PQ Money supply, velocity which it circulates equals prices, quantity of expenditures.
This is all the CFK admin needs to know = if you increase the money supply prices go up, simple.
Oh Milton you're my hero.
@ 20
Aug 11th, 2012 - 01:06 am - Link - Report abuse 0'Pampero Pantalon de combate' are 'Combat trousers' (6 pockets) made by the firm “Pampero” in Argentina, of an excellent quality, which is unusual in Arg. - wear them most days and I can assure you they are not nappies/diapers :-)
The reality is NOBODY wants products manufactured in Argentina. The quality of Argentine produced products is laughable. The appliances both small and large last about 3 months until they break down. Cheap, shoddy materials, and the designs look like things that I found in my grandmothers basement in 1960. So if you like cheap, retro imitations that don't funcion and need to be constantly fixed, then go for the Argie junk. The factory workers work about 5 hours per day, for inflated salaries, and if their boss asks them to do anything they complain to the union shop steward, who files a lawsuit or calls a strike against the factory owner. This is how Argentina works! It's the biggest failed experiment ever, called the “República Argentina” that is ruled by the criminal Cristina Fernandez de Kirchner (a/k/a scrotum neck) that has stolen BILLIONS of dollars from the Argentine people, tries everything in her power to squash her detractors, silence the press, opress the citizens, steal their money with extorsive and invented taxes, it's well known that she never even finished her law degree but says she is a a lawyer, her children the horribly ugly Florencia and pudgy fat Maximo have high ranking government positions but have never set foot in a university, a vice-president Amado Boudou who is a small time criminal mafioso who owns companies that he awards government contracts to for millions - Argentina is a bastion of modern day CORRUPTION - all countries should avoid doing business with Argentina like it was a PLAGUE - this Kirchner disaster cancer must be taken down and thrown to rot in jail forever along with her cronies - down with this PERONIST garbage who talk about “social justice” and are only interested in their own power and wealth and do NOTHING for the citizens of the country but steal their hard earned money and possessions and talk about how awesome they are. Cristina Kirchner even once said that “god wanted her to be president and rule Argentina”!
Aug 11th, 2012 - 02:16 pm - Link - Report abuse 0#24 increased money supply will only cause inflation when the production (GDP) remains equal or decreases. If production increases proportionally, no inflation will be seen.
Aug 12th, 2012 - 02:15 am - Link - Report abuse 0If you have 100 dollars and 50 widgits(money supply and GDP)....you have 2 dollars per widgit. Increase money supply to 150 and remain at 50 widgits, you now have 3 dollars per widgit. However if production increases to 75 widgets, you still have 2 dollars per widgit.
The velocity formula is based on all things being equal and does not account for changes in production.
27. What happens when production and available goods both go down and the money supply goes up?
Aug 12th, 2012 - 11:30 am - Link - Report abuse 0I think we all know the answer to that question except maybe Axel...
Exactly, I don't think they seem to understand the natural effects of increasing they supply of money, restricting imports and taxing exports has on they economy. They is an effect that they cannot control. They will not be stuck with excess goods as they can't produce them to begin with. Maybe excess soy beans. Anyone read that Brazil has a shortage and they want to buy from Bolivia and not the # 3 worlds supplier of soy Argentina. So much for Mercosur buddy buddy system.
Aug 12th, 2012 - 01:05 pm - Link - Report abuse 0@27
Aug 12th, 2012 - 01:09 pm - Link - Report abuse 0“The velocity formula is based on all things being equal and does not account for changes in production.”
And what happens when things are not equal? To provide the extra exports (because the price is more attractive), you need greater imports (think of the auto industry that have to import most of the components) and they cost much more.
The value added element of the vehicle is now greatly reduced, as is the profit. With the increased cost of utilities (inflation) and wages (ditto) the profit falls even further.
Given that the profit in auto manufacture is critically dependent on volume, I am not at all convinced that the 'additional' exports will in fact cover the additional costs.
'Busy fools' comes to mind. More work for the same or less real monetary value is going backwards, surely?
Don't forget the other side of the coin. Brasil, Argentina's biggest customer for autos is cutting back dramatically on demand. Hate to rain on your parade but I can see tears ahead.
The cnut Brown was a proponent of Keynes. Keynes works well when things are hunky-dory, Keynes only has one answer to a depression (which is what we all have) and that is to effectively increase the money supply by printing it, which increases indebtedness, which leads to bankruptcy (or default for countries).
Keynes is most certainly NOT my hero.
#30
Aug 12th, 2012 - 04:43 pm - Link - Report abuse 0While I do not consider myself an economist as everyone in these blogs apparently are, I do not believe in the......“filed of dreams” theory. I was curious as to what your economic dissertation was on?
You do realize that in my post 27 I was merely stating a fact that increased money supply does not always create inflation.
As I have said many times, I think CFK is deliberetly trying to crash the system. There is no way that she/they are that stupid. They have done EVERYTHING they can to destroy the economy and then some.
Aug 12th, 2012 - 05:45 pm - Link - Report abuse 0At what point do the people say enough? 160% inflation? Empty grocery store shelves? What is the breaking point? 10/1, 15/1?
I guess we shall see in the very near future.
I agree with you Yankee, I believe it is intentional as well, some obscure plan of hers. However, the level in stupidity in some people never ceases to surprise me. Whatever the plan, I wonder if the Argentines will ever reach a saturation point and take back there country.
Aug 12th, 2012 - 06:35 pm - Link - Report abuse 0@33
Aug 12th, 2012 - 07:54 pm - Link - Report abuse 0When more than 60% of the population did not vote for this awful person, you have yo wonder what the break point will be OR if there will ever be a break point.
It seems utter madness to many of us that such a mineral rich country with beautiful scenery, the equal of anywhere else in the world, is so poor in this age. 40% of the population are living in shanty towns devoid of basic amenities such as water, sewers and in some part, electricity.
Only a forward looking regime, able to provide plenty work opportunities and modern housing at reasonable cost, seemingly unheard of in the history of the country until you consider where Argentina was in the world around 1900 - 1920.
I wonder just how much of that success was due to the British?
I'm an American but I enjoy Argentina. I can only hope that there will be a breaking point.
Aug 12th, 2012 - 08:34 pm - Link - Report abuse 0Commenting for this story is now closed.
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