Argentina: Inflation at 18-month high in August
September 12, 2012
In August, consumer prices for the Great Buenos Aires area added 0.89% over the previous month, which was up from the 0.79% rise recorded in July. The monthly increase was mainly the result of a sharp rise in prices for transport and communications. As a result of the monthly figure, annual headline inflation inched up from 9.9% in July to 10.0% in August, the highest level in 18 months Official inflation data published by the National Statistics Institute (INDEC) have been met with suspicion ever since a controversial change to the price variation measurement methodology was implemented in 2008. 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 March 2011, went a step further by fining a number of consulting firms for publishing their inflation estimates. In early April, 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