It is very complicated to actually talk about prices in Argentina. So complicated that the Argentine Minister of Finance Mr Hernan Lorenzino, had a very hard time responding to a very simple question: What is the inflation rate? See it for yourselves!
In this interview that Lorenzino gave to the Greek press, he starts by giving the official speech, indicating how well most economic indicators such as poverty, GDP, etc. have evolved. But when asked about inflation, the minister could not find a good response, he doubted a bit, hesitated, and feeling very uncomfortable he finished the interview by saying: "me quiero ir" - I want to leave -.
Since the video was published, the hashtag #MeQuieroIr became trending topic. Lorenzino's attitude and the faces he made when hesitating made most Argentines laugh and realize why the Argentine politicians hardly talk to the local press.
| The Argentine Minister of Economy, Hernan Lorenzino |
The official annual inflation rate is now at 10.2%, but the real increase in retail prices is around 30%. Intense.
The government denied the problem during years but recently realized that something should be done. So they structured a price control scheme to alleviate the problem until the congress elections take place in October. The agreement established that all major retailers will not increase prices for 60 days, that all promotions and discounts will be eliminated and that no advertisements would be published in the press. The supply chain, and other goods and salaries were not included in the agreement, so the increase in costs would have to be absorbed by the retailers. That obviously cannot last for long... So prices went up before the agreement, some during, and now they adjusted heavily.
I will start to comment more and more about Argentine economics. In my custom tours I provide many figures and explanations to help you understand the economic present and future of this country.
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