Argentina: Inflation remains stable in May
June 15, 2011
In May, consumer prices rose 0.74% over the previous month, below the 0.84% price increase registered in April and in line with the 0.75% increase tallied in May last year. As a result, annual headline inflation remained stable for a third consecutive month at 9.7%, which represents the lowest level since March 2010. 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 June, households believe that consumer prices will increase 25% over the next 12 months, which was in line with results from May's survey.
Author: Armando Ciccarelli, Head of Data Solutions