Consumer Price IndexTuesday, April 15, 2014
INDEC posts March inflation today
The INDEC national statistics bureau is set to release the third edition of its reformed federal Consumer Price Index (IPCnu) today, with inflation for March expected to clock in significantly lower than the 3.7 and 3.4 percent posted for January and February, respectively.
The Central Bank’s monetary absorption — whereby pesos were driven out of circulation and into credit schemes as result of hiked interest rates — largely explains such forecasts.
Reuters’ regular poll of consultants, which include local and foreign experts, predicted INDEC’s inflation would clock in at 2.8 percent.
The skyrocketing increase in inflation in the first two months of the year was also said to have cooled down with the waning of market volatility caused by the sharp depreciation of the peso against the dollar in January, after which much of the private sector panicked and drove up prices.
The importance of the government’s newly expanded price-control scheme for supermarkets was played down by several economists due to its limited range.
Likewise, the cuts to public utility subsidies did not have an effect, as they were announced at the end of the month.
Parallel to INDEC’s news conference, scheduled for 4pm at the Economy Ministry, the opposition will again release its own inflation estimate two hours earlier in Congress, insisting that its figure, calculated as an average of the inflation reported by several consultancies, serves as a point of reference to gauge the veracity of the official number.
Herald with DyN, Reuters