Argentina: Inflation remains stable in April
May 19, 2011
In April, consumer prices rose 0.84% over the previous month, in line both with the 0.84% price increase registered in March and the 0.83% increase tallied in April last year. As a result, annual headline inflation remained stable at March's 9.7%, which represents the lowest level in 12 months. Official inflation data published by the National Statistics Institute (INDEC) continues to be met with suspicion ever since a controversial change in the methodology to measure price variations was implemented two years ago. Allegations that INDEC data may be manipulated by the government have been repeatedly denied by the local authorities. Against this backdrop, official inflation figures remain well below independent analysts' estimates. Consumers share the more realistic assessment of inflation made by private analysts. According to a survey from Universidad Torcuato di Tella (UTDT) conducted in May, households believe that consumer prices will increase 25% over the next 12 months, which was in line with result from April's survey.
Author: Armando Ciccarelli, Head of Data Solutions