Economists See January CPI as Credible, but Believe New Index Would Be More Accurate
Economists find the January CPI credible but argue that a new methodology would better reflect consumer reality in Argentina.
After the controversy surrounding the government's decision to delay the implementation of a new methodology for measuring inflation, consulted economists deemed the January Consumer Price Index (CPI) figure of 2.9% credible. However, they stressed the importance of adopting a new index, which they believe would more accurately reflect the real consumption basket of Argentine consumers. They noted that under the new methodology, the CPI could have even been slightly lower than the figure published by Indec, but they caution that this accuracy might diminish in the upcoming months due to anticipated increases in public service rates, which the new methodology would weigh more heavily.
Economists, particularly Camilo Tiscornia of C&T Asesores EconΓ³micos, emphasized that while the current measurement is acceptable, the ongoing economic volatility and the expected rise in utility prices could lead to a more considerable divergence between the current CPI and what the new index would indicate. Tiscornia and his peers indicated that as these factors begin to influence the consumer price landscape, the accuracy of the CPI as it stands may suffer, leading to potential public dissatisfaction and skepticism about the government's inflation statistics.
Overall, the discussion around the CPI is not just about numbers; it reflects broader economic confidence and the trust of the populace in the government's handling of economic indicators. The call for a new index illustrates a growing demand for transparency and precision in economic measurement, which could ultimately affect policy decisions and public trust in economic governance.