BUENOS AIRES -Argentina’s inflation expectations remained unchanged for the eighth straight month, with polled residents anticipating prices soaring another 25% over the next year, according to a closely watched survey from Torcuato Di Tella University, or UTDT.
The survey stands in stark contrast to government data, highlighting the distrust of the inflation index published by the national statistics agency Indec.
According to Indec, Argentina’s inflation rate in September rose 0.8% on the month and 9.9% on the year.
Most economists say annual inflation is running between 20% and 25%, due to high government spending, lax monetary policy and a booming economy.
A Dow Jones survey of four research firms that calculate their own measures of inflation produced a median increase of 1.8% last month. A survey of eight anonymous private consultants released by opposition Congressmen Thursday put the monthly inflation gain at 1.87% and the year-on-year increase at 24%.
The legislators have released the report in each of the last four months to shield the forecasters from the threat of prosecution.
The administration of President Cristina Kirchner has aggressively pursued criminal charges and slapped hefty fines on a number of local economists for publishing what it calls «misleading» inflation estimates.
Salary increases are perhaps one of the best indicators of the inflationary pressures in Argentina’s economy. The government authorized a 25% increase to the minimum wage earlier this year and many unions have won even higher wage increases.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com
Source: Dow Jones