It’s been a while since the IMF has been suspicious about the economic statistics released by the Argentinean government.
The 180 days deadline that the agency has given Argentina to straighten its official survey system, whose numbers are drastically different from those disclosed by private consultancies, expires this month. No sanctions yet, though, but the IMF’s eyes are on Argentina.
How suspicious?
The opposition accuses the government in Argentina to manipulate data on the economy. While the State-owned institute Idec says consumer prices rose 8.6% in 2011, data released by private consultancy firms indicate that the actual inflation number is about 23% in this same period.
In January 2007, the Commerce Secretary Guillermo Moreno changed the methodology for calculating inflation and generated controversy all over the media. Last year, the government fined private consultants (like
Orlando Ferreres e Associados) who reported higher price increases, based on a law that prevents the spread of information that might “confuse the consumer”.Gossip: An Argentinean economist told us yesterday…
Insiders in Argentina have told us that an example of this discrepancy is this: government agents go to individual retailers, markets and drug stores telling them that official survey agents are going there the next week and the bureaucrats tell them “you should not report the actual price increase from last year otherwise the government will tax you in double or close your business… here are the numbers you should report in order to comply with our system…”
True story from an actual business owner in Argentina … believe it or not.
INFLATION IS UNDERREPORTED EVERYWHERE. ALL GOVERNMENTS HAVE INCENTIVES TO CHEAT ON CITIZENS.
When it comes do inflation every government in the world cheats. Brazil is famous for doing so since the portuguese landed.
BUY GOLD AND SILVER.
e no brasil..
que o governo insiste em dizer que a inflacao esta no limite da meta
PORRA NAO FODE..
onibus subiu OFICIALMENTE 15%
os alimentos DISPARARAM!!
e a inflacao ta abaixo de 5% ?????
porra.
This is what Greece has been doing for the past years and this all resulted with a horror show that many European people never wish to watch. Argentina will have consequences sooner or later.
yes right, all brasilian problems are because of the portuguese and all argentinean problems are because of the spanish….250 years after the independence in brazil problems in brazil are still because of Portugal :)… when you cant do it yourself, its easier to blame others for your incompetence….ask in LISBON or MADRID who wants a brasilian or argentinien to work with then…9 out of 10 say … no thanks.
You should respect more the hand that's going to feed you.Is Germany going to give Portugal any money ? I don't think so… Soon we going to see a spike in Portuguese immigration to Brazil. Good time to buy half of Portugal so we can export to Europe using Portugal as proxy. Me and a bunch are just waiting to buy
Poor-tugal in liquidation sale. By the way He didn't blame Portugal he just sad that's normal for any country to do that.
Does the same scheme apply in China too ?
How about the USA? When is Mr BUBBLE HEAD going to blog about how the US manipulates it’s real inflation number just like it’s real unemployment number (22%).
Hey guys. First of all, let’s not fight about this, making it a personal issue. As an argentinean, and also someone who worked in capital markets, I might shed a little light about the whole issue: Argentina has sovereign debt linked to the cpi index so, the higher the index, the more argentinean government have to pay bondholders. It’s another way of screwing people. Wanna know the funny part? A lot of those bond placements are held by argentineans, in a direct way (got them after the renegotiation post-default) or in a indirect way (part of the national pension fund). So what people don’t realize in Argentina is that their own government is “fingering” (pardon me for the expression) them, besides all the associated costs of having a less accurate or forfeited methodology (like higher discount rate on investment projects, less predictability on economic variables and ergo less investment, etc. etc.). I guess one gets to think that everybody sort of “mess” with the statistics around the world, but not in the way we argentineans are doing so.
Good night.