Argentina: Inflation edges up in May
June 13, 2012
In May, consumer prices added 0.81% over the previous month, which was broadly unchanged from the 0.83% rise recorded in April. The monthly increase was mainly driven by higher prices for education as well as for healthcare. As a result the monthly increase, annual headline inflation inched up to 9.9% from 9.8% in April. Official inflation data published by the National Statistics Institute (INDEC) are met with suspicion ever since a controversial change to the price variation measurement methodology was implemented five years ago. As a result, private sector analysts report their own independent inflation estimates, which differ notably from the official figures. The government has repeatedly denied allegations that INDEC data are manipulated and, in May 2011, went a step further by fining a number of consulting firms for publishing their inflation estimates. In early February 2012, however, the IMF gave a six-month deadline to Argentinean authorities to implement specific measures in order to improve the quality of inflation data, but INDEC has failed to act so far.
Author: Armando Ciccarelli, Head of Data Solutions