Argentina September ‘Congress index’ inflation 2.11% and 25.44% in twelve months

Friday, October 11th 2013 - 13:23 UTC

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The ‘official’ tamer inflation from Indec is expected on 15 October

Argentina’s “Congress” Consumer Price Index which is an average of private consultants and is released by opposition lawmakers, showed that inflation in September increased 2.11%, the highest September since 1991, accumulating 25.44% in the last twelve months.

The presentation of the Congress index was done by opposition members of the Freedom of expression committee, since private consultants have been intimidated with fines and even jail for not keeping to the official Argentine government line of estimating the monthly cost of living.

“Despite the fact the Argentine economy is cooling and there is no such growth as the government pretends, we have 2.11% inflation in September which is most alarming” said lawmaker Juan Pedro Tunessi.

He added the Argentine economy is slowing, no new jobs are created, demand is down and investment frozen. Furthermore the most dynamic sector, the auto industry has weakened and evidences of this are the reduction in working hours and an anticipation of vacations.

The official inflation index from the much questioned Indec, stats office, is expected for 15 October. The Indec monthly indexes are usually less than half those of the Congressional index, or rather the private consultants’ average is usually more than double the Argentine government estimates.

This week also Argentine bakeries from Buenos Aires province announced the end of “bread at 10 Pesos (approx on dollar)” and the new price: “20 to 22 Pesos because the promised subsidized flour ceased to arrive”.

Argentina’s inflation and GDP growth estimates are not only questioned domestically but also internationally, mainly the IMF and World Bank. IMF has a pending sanction on Argentina while it waits for a promised new consumer price index, supposedly to be announced sometime this month.