The article discusses how the Argentine government's failure to update the Indec's price basket means reported inflation for January could have been lower than 2.9%.
The article from Clarin highlights an argument made by various consultancies regarding the inflation figures released by Argentina's National Institute of Statistics and Censuses (Indec) for January. They suggest that if the government had allowed an update to the basket of goods used to calculate inflation, the reported rate of 2.9% could have been lower, estimated between 2.7% and 2.8%. This discrepancy is particularly relevant as it marks the fifth consecutive month of increasing inflation in the country, underscoring the ongoing economic challenges faced by Argentina.
The cause for the predicted lower inflation rate stems from the observation that prices for utilities like electricity, gas, and water remained relatively stable, increasing by just 3%. In contrast, the prices for food and non-alcoholic beverages surged by 4.7%, which noticeably contributed to the inflation figures. The proposed updates to the inflation methodology would have reduced the weight of the latter sector, thereby impacting the overall consumer price index (CPI) calculations.
Economy Minister Luis Caputo also indicated that the updated basket was expected to have significant implications for future inflation readings. The discussion around potential changes raises questions about the transparency and accuracy of inflation reporting in Argentina, especially given the economic climate where inflation continues to be a pressing concern for citizens and policymakers alike.
