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Argentine inflation drops to 2.3% in January, helped by the freeze of several items

Friday, February 14th 2020 - 08:40 UTC
Full article 13 comments
Indec head Marcos Lavagna was cautious in his comments, “it's good news, inflation is slowing, but in no way can we say that inflation is under control” Indec head Marcos Lavagna was cautious in his comments, “it's good news, inflation is slowing, but in no way can we say that inflation is under control”

Argentina inflation decelerated to 2.3% in January, the official statistics agency said on Thursday, well below analyst expectations for a 3.4% rise.

The rate of inflation was also slower than in December when consumer prices rose 3.7%.

The January data brought 12-month inflation to 52.9%.

Argentina consumer prices rose 53.8% in 2019, the biggest increase in 28 years. Taming inflation in Latin America’s no. 3 economy will be a major challenge for the new administration of President Alberto Fernandez.

The head of the stats office, Indec Marcos Lavagna was cautious in his comments, “it's good news, inflation is slowing, but in no way can we say that inflation is under control”

Argentine president Alberto Fernandez talked in similar terms, “it's encouraging, but definitively insufficient”.

Lavagna identified different factors in the final result. “Some factors were expected, between August and December, health care was increasing 6% per month; fuel 3.5% and 4% also monthly, and they have all been frozen now, so it is only natural inflation was lower”

Likewise public services rates have also been frozen until next July, and similarly with some seasonal issues such as garments. “Every year there is a drop in January because the change of season”

As to the issues with a strong surge in prices...some 5%, they include leisure, tourism and culture, “also because of seasonal reasons”. Food prices also climbed since the VAT freeze in some products came to an end.

Categories: Economy, Argentina.

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  • Enrique Massot

    Compare Alberto Fernandez' approach -- getting results but remaining modest and cautious -- with that of former president Mauricio Fiasco Macri, who in campaign promised to tame inflation as it would be the easiest thing to do and as soon as taking office made it shoot out of control.

    Feb 15th, 2020 - 04:39 pm 0
  • Jack Bauer

    Don't bother comparing, it means nothing in practical terms...only concrete results do....and controlling prices by 'freezing' them, may give the impression of temporary relief, but it's the same as granting subsidies.....someone's got to finance them, and they usually result in increasing the inflationary pressure.
    But, let's see what happens when the prices are unfrozen...

    Feb 16th, 2020 - 09:21 pm 0
  • DemonTree

    RE “opening indigenous lands”

    “Lower courts concluded not enough evidence to indict Temer”

    Now the left is removed from power, Brazilian justice is back to functioning with its usual (in)efficiency. They even rescinded the law saying criminals should be jailed after the first appeal. Moro apparently can order the PF and COAF to investigate journalists who annoy him, but he can't speed up investigations on corrupt politicians? Did he manage to get any of those laws passed?

    “Forget the USA… I live here, listen to ‘n have access to what you most likely don’t.”

    The Guardian criticises Corbyn and other figures on the left regularly. Will you believe me if I tell you it's impartial?

    “if I thought the ends justified the means”

    That's the problem. If someone hacked Lula's private messages and released them, you'd be all for it. It's a very dangerous view; lots of atrocities have been carried out by people who think the end justifies the means. I also think it's one reason there have been so many coups in Latin America. Having the government they prefer is more important to people than democracy, law, or freedom.

    “Despite the animosity, I’d say political adversaries”

    Wonder what they'd say? A PSOL politician was assassinated, and B nearly was by an ex-PSOL member. In those circumstances, perhaps a certain amount of paranoia is warranted. How would you know if Wyllys underwent any stress? Or that the reasons given by the others who fled Brazil were 'bullshit'? You don't know them. As for Lula's reputation, he was ahead in the polls even after being convicted. The LJ team would not have been so worried otherwise.

    Far as I can see the STF first said Lula could give interviews, then he couldn't, then (after the elections) he could again. And he gave at least a couple from jail. Political wrangling from the judges.

    Re Mourão:

    Feb 17th, 2020 - 10:40 am 0
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