Argentina: Inflation inches up in August
September 19, 2011
In August, consumer prices rose 0.83% over the previous month, slightly up from the 0.79% price increase registered in July and above the 0.74% increase tallied in August last year. As a result of the increase, annual headline inflation inched up to 9.8% after remaining unchanged at 9.7% over the previous five months. Official inflation data published by the National Statistics Institute (INDEC) continue to be met with suspicion ever since a controversial change to the price variation measurement methodology was implemented two years ago. As a result, private sector analysts began reporting independent inflation estimates that differ notably from the official figures. The government has repeatedly denied allegations that INDEC data are manipulated and in March went a step further by beginning to fine a number of economic consultancy firms for publishing independent inflation estimates, raising further doubts about the validity of official inflation data. Consumers share private analysts' more realistic inflation assessments. According to a Universidad Torcuato di Tella (UTDT) survey conducted in September, households believe that consumer prices will increase 25% over the next 12 months, which was in line with results from the August survey.
Author: Armando Ciccarelli, Head of Data Solutions