Mar 10 • 11:36 UTC 🇦🇷 Argentina Clarin (ES)

After Lavagna's departure, the new head of INDEC evaluates three options to update the inflation index

The new head of INDEC, Pedro Lines, is exploring various options to update Argentina's inflation index following Marco Lavagna's resignation amid criticisms of outdated methodologies.

After Marco Lavagna's resignation from INDEC due to the suspension of the new inflation index, his successor, Pedro Lines, is considering several approaches to modernize the country's inflation measurement. Lavagna's resignation came just before the announcement of January's inflation rate, which was the highest in eight months at 2.9%. He had planned to launch a new consumer price index (CPI) nearly two years ago, based on household expenditure surveys from 2017/2018, a project that had been delayed due to political decisions and disagreements with the IMF.

Lines is assessing alternatives beyond the IMF's proposed index, acknowledging that developing a new model could take up to four years. One potential option involves creating a new consumption basket that reflects 2027 spending habits, considering the ten-year-old 2017 survey is no longer relevant. Another proposal involves adapting the existing methodology, known as "modelo," to better suit current economic conditions without relying solely on external assistance.

This situation highlights the challenges the Argentine government faces in producing reliable economic data amidst international scrutiny and domestic pressures stemming from inflation. With inflation impacting the economy and public perception, the resolution of this index dilemma is crucial for restoring credibility in Argentina's economic statistics, which have long been questioned both locally and by foreign entities such as the IMF.

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