Avocado
Well-known member
They need to redo the inflation index! So many things need to be changed out. Real inflation is much higher. Even INDEC agrees it needs to be changed.
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Milei’s Inflation Miracle Distorted by Obsolete Items in Index
- Thread starter Avocado
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earlyretirement
Moderator
Thanks for posting. I have long argued that all countries have higher inflation than reality due to stripping out essential things out of the basket of goods. Same thing happens in the USA.
Blockchain
Well-known member
Interesting they include newspapers, cigarettese and telephone lines in their index! No one has telephones anymore. Everyone just uses their cellphones. I rented several Airbnbs and none of them had phone lines. Do people even use these in BA anymore besides offices?
Only reason they wouldn't adjust is to keep the inflation numbers artificially lower.
Wally
Well-known member
Argentina has always lied about inflation because a higher number means bigger payments on inflation linked bonds. That is how Argentina finances itself. You will recall all the lying under Kirchners. It's not as bad now but I had no idea they still used outdated things like this. If the head of INDEC admits it needs to be recalculated you know it is wrong. Doubt they will fix it anytime soon or the inflation #'s would go up.
Uncle Wong
Well-known member
Yep the same things happens in the United States with them not including several things in the index.
I hear next month they are raising the prices again in just about everything. Electricity, water, gas, private health insurance, rents. Electricity and gas they said it will jump up 4% next month. Bus fares are going up 4.8% and rents are going up 34.6%. Also health plans are jumping up 2.8% next month.
I seriously doubt salaries are going up that much.
I seriously doubt salaries are going up that much.
Cheap Bastard
Active member
Are you sure that gas figure is correct? I just read in the Clarin that starting in February natural gas prices will rise by an average of 16.8% nationwide.
Yes it is 16.9% going up next month. I saw it a bunch of places. And the worst thing is most collective bargaining agreements I am seeing have salaries capped at no more than 2% a month. The math doesn't math.
VINO
Well-known member
Finance Prof
Well-known member
It will be nice that the new inflation basket will start this month. It will make things more accurate.
www.cronista.com
Caputo confirmó al nuevo director del INDEC: quién es Pedro Lines - El Cronista
El especialista en cuentas nacionales asumió la conducción transitoria del organismo de estadísticas en un momento clave: a días de publicarse el nuevo IPC con metodología actualizada.
Yes but isn't this fraudulent? Last year they announced that last month (January 2026) the basket that measures inflation would be charged because the old one wasn't realistic. So January came and went and the inflation number turns out much worse than they expected. The head of INDEC didn't want to backtrack because it would be illegal and also their entire credibility would be torn to shreds. So they fire him and postpone the new index #.sIt will be nice that the new inflation basket will start this month. It will make things more accurate.
Caputo confirmó al nuevo director del INDEC: quién es Pedro Lines - El Cronista
El especialista en cuentas nacionales asumió la conducción transitoria del organismo de estadísticas en un momento clave: a días de publicarse el nuevo IPC con metodología actualizada.
This seems to be a step in the wrong direction.
Piranha
Well-known member
This is a reason why international companies are staying on the sidelines for now. Things don't function like a normal country.
There are all sorts of bonds, contracts, treasury bills, fixed-term deposits, loans, etc. that are all adjusted by UVA. The government can't just announce a change in the index and then on the day they are supposed to release the data go back to the previous methodology because the inflation number that comes out is worse than expected. Yet another huge strain in the credibility of this government. These are Kirchner type moves.
Lavagna renunció al Indec luego de que el Banco Central confirmara la manipulación del índice de inflación
El BCRA reconoció que con el nuevo IPC la inflación hubiese sido más alta. "Se tendría que haber ido antes, perdió prestigio", afirmó a LPO un respetado técnico que lo conoce bien.
www.lapoliticaonline.com
Cardiac Arrest
Active member
A joke. In August 2024 the government said the inflation methodology was changing and it was a finished issue. Now they say "we need to wait for the disinflation process to consolidate before they can change the measurement methodology. This is straight up out of the K playbook.This is a reason why international companies are staying on the sidelines for now. Things don't function like a normal country.
There are all sorts of bonds, contracts, treasury bills, fixed-term deposits, loans, etc. that are all adjusted by UVA. The government can't just announce a change in the index and then on the day they are supposed to release the data go back to the previous methodology because the inflation number that comes out is worse than expected. Yet another huge strain in the credibility of this government. These are Kirchner type moves.
Lavagna renunció al Indec luego de que el Banco Central confirmara la manipulación del índice de inflación
El BCRA reconoció que con el nuevo IPC la inflación hubiese sido más alta. "Se tendría que haber ido antes, perdió prestigio", afirmó a LPO un respetado técnico que lo conoce bien.
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Wally
Well-known member
This is a big negative. Most people know that inflation is much higher than what governments say they are. This article was from 2007 talking about how INDEC plays with the numbers. I was hoping we would get real inflation numbers with this new formula but just goes to show you that it's still smoke and mirrors.This is a reason why international companies are staying on the sidelines for now. Things don't function like a normal country.
There are all sorts of bonds, contracts, treasury bills, fixed-term deposits, loans, etc. that are all adjusted by UVA. The government can't just announce a change in the index and then on the day they are supposed to release the data go back to the previous methodology because the inflation number that comes out is worse than expected. Yet another huge strain in the credibility of this government. These are Kirchner type moves.
Lavagna renunció al Indec luego de que el Banco Central confirmara la manipulación del índice de inflación
El BCRA reconoció que con el nuevo IPC la inflación hubiese sido más alta. "Se tendría que haber ido antes, perdió prestigio", afirmó a LPO un respetado técnico que lo conoce bien.
Betsy Ross
Well-known member
Many of us have argued that inflation was higher than what the government says it is. This just goes to show you that is true.
www.batimes.com.ar
Milei shelves inflation revamp after statistics chief quits
President Milei’s government says it’s holding off on using new methodology to measure inflation, just hours after Argentina’s chief statistician resigned from his post.
www.batimes.com.ar
What irks me is the double standard. When Cristina was corrupt or cooking the books it was wrong. The government already criticized Cristina for her lying about inflation numbers and they came up with a new measurement system that was going to be more accurate. Now Caputo is saying that they can't really tell us the real inflation figures because it would be too high and he can only tell you the real number once it starts to go down.Many of us have argued that inflation was higher than what the government says it is. This just goes to show you that is true.
Milei shelves inflation revamp after statistics chief quits
President Milei’s government says it’s holding off on using new methodology to measure inflation, just hours after Argentina’s chief statistician resigned from his post.
You can't make this up.
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