the government will now publish inflation every week, at the highest in 32 years

2023-09-16 04:00:00

Overwhelmed by inflation (124.4% over twelve months) unprecedented for 32 years in August (12.4% over… one month), the Argentine government wants to analyze the phenomenon as closely as possible. Buenos Aires will now publish a weekly inflation index, hoping to dampen possible inflationary expectations.

Argentina: worst monthly inflation in 32 years (12.4% in August)

« We will issue a weekly inflation report every Friday », announced Friday the Secretary of the Ministry of the Economy Gabriel Rubinstein on X (formerly Twitter). In addition to ” this estimate from the Economic Policy Secretariat, independently of INDEC (National Statistics Index) which will continue its usual publications », namely the monthly, official consumer price index.

“Weekly inflation down,” boasts first publication

« Weekly inflation down “, trumpets the first of these reports, which emphasizes that “ weekly inflation fell in the first week of September (between the 4th and the 10th) and would have reached the value of +2.1% », according to projections, following a peak of 4.8% for the third week of August. “ Although the weekly figure remains very high, it is in line with previous values » to the shock of the devaluation of August 13, praises the ministry. “ We estimate that the next weekly readings will consolidate the downward trend », he steps forward.

Wednesday’s publication of inflation for the month of August, 12.4%, (i.e. +80% since the start of 2023) raises fears that inflation, endemic in Latin America’s third largest economy, will drift out of control, in a context of increased uncertainty by the upcoming presidential election on October 22.

Calming the emotional dimension of inflation

In a country which has suffered double-digit annual inflation for a dozen years, the inflationary expectations of economic actors can actually play an accelerating role, which the government (center-left) hopes to calm with a now weekly temperature check. `

« The inflationary impact is first of all very psychological, but we must take into account this socio-emotional dimension (…) (because of) the real-time figures on your cell phone, almost like the weather. The repetition of data more or less unconsciously nourishes an anxiety-provoking dramatization effect. observed a few months ago to The Tribune Michel-Pierre Chélini, professor of economic history at the University of Artois.

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It is this psychological dimension that the Argentine government is seeking to calm down: the weekly figures will logically be more modest over a week than over a month or a year. Even if this does not resolve the major structural causes of the price surge. The stakes are high for the Minister of the Economy Sergio Massa, candidate of the government camp in the presidential election of October 22. The specter of inflation already looms over the ballot.