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forest444

(5,902 posts)
9. Just the ones pertaining to CPI.
Sun Jan 3, 2016, 01:33 PM
Jan 2016

This was done because so many of Argentina's bonds were tied to inflation, and for years after the policy of inflation understatement began (in 2007) it saved them up to $3 billion a year in interest payments.

A good alternative inflation measure would have been the one used to measure GDP growth, which is why the IMF itself (no friend of Argentina) endorses the GDP growth figures. In any case, inflation was on a downward trend (about 1.6% a month according to MIT, or 21% annualized) until Macri's election and his announcement of a shock devaluation triggered a sharp price run-up.

Orlando Ferreres (a Menem-era official whose CPI estimates were favorites of the Argentine right, until Macri took over that is), projects that inflation in 2016 will be no less than 38%.

That's why Macri refuses to publish any inflation figures for the time being.



Latest Discussions»Region Forums»Latin America»Macri orders that Argenti...»Reply #9