Argentina: Inflation picks up in January
February 15, 2013
According to official figures, consumer prices for the Great Buenos Aires area added 1.1% over the previous month in January, which was slightly up from the 1.0% rise recorded in December. The monthly increase was driven by higher prices for transport and communications as well as for recreation. As a result of the monthly rise, annual headline inflation picked up from 10.8% in December to 11.1% in January, marking the highest level seen in more than two years.
However, according to the so-called "Congress Index" (IPC-Congreso) - a monthly inflation estimate based on the analysis of various private consulting firms elaborated by a group of opposition lawmakers - consumer prices increased 2.6% over the previous month in January, up from the 2.1% recorded in December. As a result, annual inflation rose to 26.7%, up from the 25.6% recorded at the end of 2012.
Consumers share private analysts' more realistic inflation assessments. According to a Universidad Torcuato di Tella (UTDT) survey conducted in January, households believe that consumer prices will increase 30% over the next 12 months, unchanged from the result reported in December.
Author: Armando Ciccarelli, Head of Data Solutions