Argentina: Inflation stable in September
October 15, 2010
In September, consumer prices added 0.72% over the previous month, which was slightly down from the 0.74% price increase registered in August and came in below market expectations of a 0.80% increase. The price rise was broad-based, as all major categories but one rose over the previous month. That said, higher prices for recreation as well as for education were the main drivers behind the September rise. As the monthly increase was subdued, annual headline inflation remained stable at August's 11.1%, which was only one percentage point below the almost three-year high of 11.2% recorded in July. However, official inflation data published by the National Statistics Institute (INDEC) continue to be met with suspicion ever since a controversial change in the methodology to measure price variations was implemented over two years ago. Consumers share this more realistic assessment of inflation. According to a survey from Universidad Torcuato di Tella (UTDT), in October, Argentinean consumers' expectations on year-end inflation changed for the first time in six months. Respondents to the survey now believe that consumer prices will increase 30% over the next 12 months, after maintaining a 25% expectation during the previous five months.
Author: Armando Ciccarelli, Head of Data Solutions