Buenos Aires Times

economy GOV'T TARGET OUT THE WINDOW

Private firms report June inflation at 3.5 to 4.1%

Consumers in Argentina have tightened their belts since the beginning of the year, as a soaring US dollar against the peso and rising fuel and utility prices take hold of prices.

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Inflation has long tormented Argentine consumers.
Inflation has long tormented Argentine consumers. Foto:Noticias Argentinas

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June inflation in Argentina totalled between 3.5 and 4.1 percent, private consultancy firms have reported.

Consumers in Argentina have tightened their belts since the beginning of the year, as a soaring US dollar against the peso and rising fuel and utility prices take hold of prices.

If official INDEC statistics bureau data backs up these private estimates, the Mauricio Macri administration’s (since-abandoned) 2018 inflation target of 15 percent was already surpassed in the first six months of the year.

The government had initially set a target of eight to 12 percent but revised the figure to 15 percent in December last year, prompting controversy and underscoring rifts in the President’s economic team. Amid the self-described economic “turbulence” in the second quarter of the year, the government all together abandoned its inflation target.

The Argentine peso has lost 70 percent of its value in the last 12 months.

Economy Minister Nicolás Dujovne says the government now believes annual inflation will total around 27 percent — in other words 2.2 percent more than the 2017 final rate of inflation.

PRIVATE ESTIMATES

Consultancy firm Elypsis put June inflation at 3.8 percent nationwide.

For its part, the Germán Abdala Foundation has setts Price Measurement Index (IRP) at four percent for June, for a 29.6 percent annual estimate. “In this sense, we are starting to see the impact of the run on the currency on prices”, the organisation said in a statement.

Go reported a 3.7 percent rate of inflation in June in its RPM index for a total 28.8 percent annually.

Fausto Spotorno reported 3.9 percent for a 28.4 percent total, saying in a statement: “The impact of the devaluation [of the Argentine peso] has arrived”.

The Ferrares firm put inflation at 15.5 percent in the first half of the year, while C&T noted inflation had surprassed the 30-percent mark in the 12 months to June. Lorenzo Sigaut Gravina at Ecolatina forecasts inflation of 3.5 percent for June and 30 percent for the year.

-TIMES/PERFIL

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