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Argentina's February inflation 4.8%; minister anticipates 1% during second quarter

Monday, March 14th 2016 - 11:33 UTC
Full article 23 comments
Renewal Front lawmaker Marco Lavagna warned the latest hikes on electricity bills had “an important role” representing two points of the index. Renewal Front lawmaker Marco Lavagna warned the latest hikes on electricity bills had “an important role” representing two points of the index.
Meanwhile Finance Minister Prat-Gay predicted consumer prices will register a steep fall in the second quarter “to nearly 1 percent per month” Meanwhile Finance Minister Prat-Gay predicted consumer prices will register a steep fall in the second quarter “to nearly 1 percent per month”
The alternative congressional index is elaborated by private consulting firms and released by opposition parties'. The alternative congressional index is elaborated by private consulting firms and released by opposition parties'.

February’s inflation in Argentina reached 4.8% and has accumulated 33.9% in the last twelve months, according to the so called “congressional inflation index” released laast week. But Finance minister Alfonso Prat-Gay from Chile anticipated that consumer prices will fall to nearly 1% during the second quarter.

 The alternative index is elaborated by private consulting firms and released by opposition parties and was revived last month by Renewal Front lawmakers after the new leadership of the INDEC statistics bureau said that official consumer-price figures would not be available until September.

Renewal Front lawmaker Marco Lavagna warned the latest hikes on electricity bills had “an important role” representing two points of the index.

Lawmaker and Renewal Front leader Sergio Massa affirmed: “we need that Argentina has a statistical certainty” adding “we cannot continue with our arms crossed not adopting measures.”

“We need dialogue and instruments to denounce abuses because given the lack of indexes and controls, there are businessmen who are destroying the people’s purchasing power,” Massa stressed during the index presentation.

Meanwhile Finance Minister Prat-Gay predicted consumer prices will register a steep fall in the second quarter ”to nearly 1 percent per month“..

”It’s highly possible that in the second half of the year we will reach inflation levels of 1% per month, which is more compatible with next year’s goal of 12%,” the minister said during an economic seminar held in Santiago de Chile.

Prat-Gay admitted the Consumer Price Index was high during the first months of 2016 (8.3% between January and February) although he ruled out an “inflationary inertia” predicting an improvement from now on.

Prat-Gay described the economic policies of Mauricio Macri’s administration which were aimed at strengthening the country’s finances. He also defended the president’s decision to settle with holdout creditors after a 15-year legal battle that took Argentina to the US courts.

He admitted that some hedge funds might reject Argentina’s offer but warned after the first payment it will be difficult for holdouts to get better conditions.

Top Comments

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  • Marti Llazo

    Everything that Prat-Gay touches turns into inflation. It's a sort of Argentine Midas Touch.

    2016: the year of the 50 percent inflation.

    Mar 14th, 2016 - 12:38 pm 0
  • Enrique Massot

    This, off course, is part of the “Joyful Revolution” promised by president Mauricio Macri during his election campaign.
    But wait--there is more. The billionaire payment to the vultures is just a first step towards massive borrowing that will, again, mortgage Argentina's future.
    Of course, Macri spoke about joy--but forgot to say the joy was just for a selected few--ask his friend Nicolás Caputo, who just got another juicy contract to build an atomic power plant.

    Mar 14th, 2016 - 07:42 pm 0
  • Marti Llazo

    You borrow money, you pay it back.

    It's really very simple.

    Even some Argentines can be made to understand the concept.

    I wouldn't worry too much about a bit of borrowing by Argentina in the near term. Think of it as the third or fourth restructuring of the same old debt, and a prelude to the next default. Coming soon.

    Mar 14th, 2016 - 09:08 pm 0
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