Argentina: Official inflation remains unchanged in October
November 12, 2010
In October, consumer prices added 0.84% over the previous month, which was up from the 0.72% price increase registered in September. The price rise was broad-based, as all major categories but one rose over the previous month. That said, higher prices for food and beverages as well as for clothing were the main drivers behind the October rise. Owing to the subdued price increase, annual headline inflation remained at 11.1% for a third consecutive month, a result that matched market expectations. 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 November, Argentinean households believe that consumer prices will increase 30% over the next 12 months, which was unchanged from the result of the survey in October.
Author: Armando Ciccarelli, Head of Data Solutions