Argentina: Inflation stable in June
July 13, 2012
In June, consumer prices added 0.72% over the previous month, which was down from the 0.81% rise recorded in May. The monthly increase was the result of higher prices for recreation, housing as well as for clothing and footwear. Despite the monthly increase, annual headline inflation was unchanged at May's 9.9%. 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 June 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