Argentina is in the midst of a consumption boom, but inflation that old Argentine plague, has once again fully surfaced, writes the New York Times Alexi Barrionuevo from Buenos Aires.
Uruguay’s consumer prices rose in January at the fastest pace since 2008, led by higher health, food and beverages costs, according to the latest report from the National Institute of Statistics, INE.
Argentina’s most influential businessman warned about the “inflationary escalade” which, if not contained can lead to an unfavourable climate for investments. Paolo Rocca, Techint group CEO made the statements during an entrepreneurs’ forum where he called for “business responsibility”, “clear rules of the game”, “transparency” and questioned the landing of Chinese oil corporations in Argentina.
China's central bank has raised the amount of money that lenders must keep in reserve, as it moves again to try to control the country's high inflation. The People's Bank of China said the reserve ratio would go up by a further 0.5 percentage points on 29 November.
The Governor of the Bank of England warned of the dangers of ‘destructive’ high inflation after admitting his surprise that the rise in the UK cost of living continues to overshoot targets, according to a report in the Daily Mail.
Argentina’s annual inflation rate in July rose to the highest level since May 2006, led by higher costs for leisure goods and clothing. Consumer prices increased 11.2% from a year earlier and 0.8% from June the national statistics institute Indec, said.
Brazil’s central bank signalled it may stop raising interest rates soon after policy makers unexpectedly slowed the pace of increases and said inflation was less of a threat amid slowing global growth.
While most of South America is undergoing a deceleration of consumer prices Argentina and Venezuela are the only countries to experience a significant increase in inflation, making it one of the main concerns or public opinion.
Brazil’s currency fell Monday over concern Europe’s debt crisis may slow the global economic recovery. The Real slid 0.9% to 1.8704 per U.S. dollar from 1.8534 on May 21. The currency has declined 6.7% this year after rising 33% in 2009.
World stock markets plunge Friday and the Euro hit an 18-month low against the dollar, on growing fears that the austerity packages unveiled across Europe could tip the continent back into recession and stifle global economic recovery.