Argentina: Inflation eases further in April
May 18, 2015
Consumer prices in April increased 1.1% over the previous month, according to the inflation index elaborated by the National Statistics Institute (INDEC). The reading was in line with market expectations and came in below March’s 1.3% rise. April’s reading mainly reflected higher prices for food and beverages as well as for education. In annual terms, inflation continued to ease in April, declining to 15.8% from March’s 16.5%, thus reaching the lowest level in over a year.
Argentina’s inflation index, which was introduced early last year, measures prices nationwide, whereas readings prior to February 2014 were based solely on Buenos Aires and the surrounding metropolitan area. The index was implemented in an effort to restore confidence in official inflation data, while also meeting the deadline that the International Monetary Fund (IMF), set in December 2013, requiring Argentina to release new GDP and inflation figures by March 2014. The previous inflation index had been viewed with suspicion both within the country and abroad for underreporting inflation figures, which prompted the IMF to censure Argentina for not supplying accurate economic data.
Author: Dirina Mançellari, Senior Economist