The Argentine government, led by President Javier Milei, decided to abandon the introduction of a new inflation index, which was set to debut with an updated basket of goods reflecting contemporary consumption habits. This decision comes as the Instituto Nacional de Estadística y Censos (INDEC) was preparing to reveal new inflation figures, raising suspicions about the government’s commitment to transparency in economic reporting. Marco Lavagna, the head of INDEC, resigned shortly after the announcement, highlighting internal conflict and disillusionment within the agency.

Many Argentines recall the dark years under the previous regimes, where economic data was systematically manipulated to present a rosier picture of the economy. Notably, the administration of Guillermo Moreno famously distorted statistics to downplay rising poverty, which was brushed aside by former Economy Minister Axel Kicillof as an unnecessary stigmatization of the poor. Such actions severely damaged the credibility of INDEC and left a lasting impression on the public about the reliability of economic indicators.

The recent pullback on the new inflation index is seen as a setback for the credibility that INDEC had slowly reestablished in recent years. Critics argue that this decision could erode public trust in the government's economic management, opening the floor for a revival of old practices characterized by the manipulation of data to suit political ends. With high inflation rates remaining a key issue for the Milei administration, the public and economists alike will be watching closely how these developments unfold and their potential impact on Argentina’s socio-economic landscape.