A third of Argentines have difficulties to face monthly costs because of inflation and lagging salaries, and 11% admit to “many difficulties” according to the latest Poliarquía public opinion poll released this week.
Argentina's 12-month inflation expectations slid in October for the first time in eight months, according to the median estimate in a survey published by the Torcuato Di Tella University, UTDT.
Official inflation in Argentina reached 0.9% in September against August, accumulating 7.8% in the first nine months of this year and 10% in the year, according to the Indec national statistics bureau.
Former Economy Minister Domingo Cavallo assured that Argentina’s current problems are much more serious, than back in 2001 since nowadays “people are desperate because they want to preserve the value of their savings and the Government does not allow them to do so”.
A benchmark measure of Argentina's money supply rose 34.6% on the year in August, according to the central bank. In its monthly monetary report published late Thursday, the Central Bank of Argentina said its M2 measure of money supply averaged 403.93 billion Argentine pesos (86.6 billion dollars) last month.
Argentines inflation expectation for the next twelve months climbed in July to 35.7% from 34.9% in June according to the latest report form the Di Tella University Finance research centre (UTDT).
Venezuela’s president Hugo Chavez running for re-election received a considerable boost for his campaign from his peer and political associate President Cristina Fernandez when it was revealed that Argentine inflation in the first half was over two digits.
The stagnation of the Argentine economy at the end of the first half of the year is “palpable” and so is tension in the money exchange market because of the restrictions on the purchase of US dollars imposed by the government of President Cristina Fernandez, according to a report from economic advisors Ecolatina from Buenos Aires.
Morgan Stanley has cut its 2012-13 growth forecasts for Argentina and forecasts a sharp devaluation of the Argentine peso next year as the economy starts to unravel amid high inflation and policy missteps.