Consumer prices rose 3.7% in June in Argentina, official data showed on Tuesday. That brought 12-month inflation to 29.5%, up from 26.3% in the 12 months through May, the INDEC national statistics bureau announced, which makes it the highest monthly recorded figure of the last two years.
June's figure – which was led by increases in transport (5.9%), food and non-alcoholic beverages (5.2%) and healthcare (4.3%) – means that prices have risen 16% in the first half of the year alone, and the 29,5% annual inflation over the last 12 months makes it one of the world's highest registered rates.
Wholesale prices also increased 6.5%, indicating prices are likely to continue rising in July. Core inflation last month stood at 4.1%, also the highest recorded since 2016.
Last December, the Argentine government set a 15% target for the whole of 2018, though officials were forced to lower expectations following the impact of the peso’s fierce devaluation in the second quarter, which saw it drop by 30%.
This prompted the administration of president Mauricio Macri to seek a US$50-billion financing deal with the International Monetary Fund (IMF).
INDEC's latest data means the government's original target has now been surpassed in the first six months of the year alone.
Private consultancy firms have predicted that annual inflation will come in at around 30% and forecast lower rates of growth.
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EM,Jul 24th, 2018 - 05:21 pm 0
Just to clarify, based on your comments on another thread: Inflation is high, partially because the peso is low in value, even though you said it was overvalued and the peso has dropped in value because Macri didn't intervene to manage its value even though he has now put in measures to increase the value of the peso?
I am surprised not seeing the crowd that used to noisily protest against inflation at the time of the CFK government. Where are they?Jul 18th, 2018 - 06:28 pm -1
Perhaps they do not want to remember that current president Mauricio Macri boasted, during his election campaign, that inflation would be the easiest thing to tame. He also vowed to be held into account if he ever failed to reign on it during his term.
Macri and his Cambiemos team also made, in 2015, numerous claims vowing to fight the alleged corruption of the then CFK government. He promised transparency, etc.
Well. For over a month now, a growing list of citizens in the Buenos Aires province -- over a 1,000 now -- have been speaking out about their inclusion in lists as financial contributors to the Cambiemos election campaign. Those citizens have flatly denied ever contributing a dime.
Some of them were shocked to discover that they had been included as members of the party now in power.
At this point, two judges are looking into two different types of potential offenses here -- one is the improper use of citizens' names and falsification of signature to account for inexistent contributions.
The second offence being investigated is the potential for money laundering through said false contributions.
If the allegations are proven in court, penalties for those found responsible are significant.
Buenos Aires province governor Maria Eugenia Vidal dismissed the accusations saying they were advanced by Kirchnerists and saying the electoral law has gaps that need to be corrected. However, in the last hours she felt the need to push under the bus a chief accountant.
Over a month after the story broke, Clarin finally took notice and published a meek story a few hours ago.
To be continued.
Wow. That's crazy. Where is the money supposed to have come from? Is there a limit on any one campaign contribution that would make them want to hide an otherwise legal donation in this way, or is the money supposed to be from illegal sources?Jul 18th, 2018 - 10:20 pm -1