MercoPress. South Atlantic News Agency
Argentina with a record 6.5% inflation in September, and 40.5% in twelve months
The top price increases were in transportation, 10.4%, and shoes and clothing, up 9.8%. Food prices climbed 7%. Argentina says that consumer prices rose 6.5% in September bringing the twelve month inflation rate to 40.5%, one of the world's highest. The inflation rate published by the official statistics agency Indec, on Wednesday follows a sharp devaluation of Argentina's currency. The nine month rate reached 32.4%.
The peso has depreciated more than half this year. That led the government to seek a large financing deal with the International Monetary Fund. Economic analysts estimate that consumer prices could rise nearly 45% this year and forecast that the economy will go into deeper recession.
The Argentine Central Bank's own REM (Market expectation survey) had predicted a rise of 5.9%, with inflation seen closing the year at around 44%. Core inflation, which discounts regulated and seasonally priced items, stood at 7.6%, the highest tally since Indec resumed measuring inflation on a monthly basis in 2016.
The top price increases in September were in transportation, which rose 10.4% and shoes and clothing, up 9.8%. Increases to utility rates that are part of a series of austerity measures have also fueled inflation. Food prices climbed 7%.
Meanwhile, US central bankers in Washington expressed fears about instability in emerging economies, such as Argentina. Some US Federal Reserve members warned that instability in emerging economies – many of which are heavily indebted and vulnerable when US rates rise – could “spread more broadly through the global economy and financial markets,” publicized minutes of Fed meetings revealed.
Markets fear currency crises in Turkey and Argentina and other emerging market economies could spread beyond their borders – something that could be sparked as investors pull out to take advantage of higher rates in the United States.
Top Comments
Disclaimer & comment rules-
-
-
Read all commentsReekio,
Oct 19th, 2018 - 07:42 pm 0Headline on MP story dated Aug. 14, 2015: “Argentina: July inflation 1.92% and 27.15% annually says Congressional index”
“Fast forward to October 2018, and not many -- if any at all -- MP commentators are saying a word about the disastrous state of the Argentine economy.”
As I've said before, if you look at the statistics, maybe it isn't as disastrous as you continue to claim.
“Looks like ideological loyalties trump everything else.”
Yes, it would seem so. I remind you that the economic statistics released during the latter years of CFK's leadership were highly suspect so it is not fair to compare those values with the figures under Macri with an honest INDEC. I agree that the inflation rate is a severe problem for Argentina but comparing the current situation with previous fictitious data because they support your own idealogical loyalties shows that you are guilty of what you claim of others.
1. The deficit is showing a clear reducing trend.
Oct 24th, 2018 - 07:57 pm 02. The balance of payments is showing an increasingly positive trend.
Headline on MP story dated Aug. 14, 2015:
Oct 19th, 2018 - 03:09 am -1“Argentina: July inflation 1.92% and 27.15% annually says Congressional index”
Below the story, a group of MP commentators were scoffing at the Argentine government's inability to control inflation.
Then Argentines voted in Mauricio Macri, who boasted he would tame inflation in his first month in office. Macri even said inflation is “a demonstration of inability to govern,” and said he wanted to be judged accordingly.
Fast forward to October 2018, and not many -- if any at all -- MP commentators are saying a word about the disastrous state of the Argentine economy.
Looks like ideological loyalties trump everything else.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!