Argentina: Inflation stable in July
August 10, 2012
In July, consumer prices added 0.79% over the previous month, which was a notch up from the 0.72% rise recorded in June. The monthly increase was the result of higher prices for recreation as well as for household goods. Meanwhile, annual headline inflation was unchanged at June'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 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.