According to Universidad Di Tella’s January survey, Argentines felt inflation at 30% last year. The average of privately-estimated indexes rose by 22.8%, while official inflation stood at 9.5%.
Twelve-months-ahead inflation expectation has been at 25% for eleven months: stable over time, and also across regions and income levels.
Another survey shows leading firms expect wage increases of 25% this year. The government has been urging unions to cap wage hikes at 18% in a bid to hold back inflation. Many unions have lately decamped from the government ranks, and wage talks there could create noise in the near future. Friendly unions are lining up for the 18% target, but may also claim revisions if privately-estimated inflation picks up.
Full report below…