Date of Submission
As observed by the CNBC.com, Argentina’s inflation is set to rise ahead of the legislative elections. The consumer’s prices shot with close to 1.9 percent in Argentina during September, and according to the statistics done by indec, it discovered that there are intentions to push the inflation to 17.6 percent further. This exceeds the upper band of the central bank’s mark for the year. The central bank which has all over the time tightened monetary policy has an objective of 12 percent to 17 percent inflation in 2017; even though, various economists have predicted it to be at 22 percent (Malik, 2016). Consequently, while the Argentina’s economic growth has continually increased in the recent weeks, controlling the inflation has confirmed to be hard than initially perceived. The central bank which has all over the time maintained its interest rate at 26.25 percent is determined to end the year with a monthly inflation of close to one percent. The surge in the user’s prices in September was attributed to 4 percent inflation in seasonal commodities.
Also, as observed by the MercroPress, the consistency of inflation has been experienced too in the food industry in Argentina where the global food index increased slightly in September. The FAO Food Index is an indicator of the monthly change in the international prices of a basket of foodstuff. The dairy price increased by close to 2.1 percent from August regulated by butter and cheese prices during the supply constraints in New Zealand, Australia, and the European Union (Gezmiş, 2017). However, the meat prices were substantially unchanged. Also, the FAO cereal price index decreased by an average percentage of 1.0 as maize and wheat produce experienced a stable supply and harvest prospects. Therefore, both CNBC and MecroPress focused on the inflation that has recently been experienced in Argentina due to political effects.
Gezmiş, H. (2017). From Neoliberalism to Neo-developmentalism? The Political Economy of Post-crisis Argentina (2002–2015). New Political Economy, 1-22.
Malik, S. (2016). A New Economic Era: How Macri’s Holdout Solution Hopes to Attract Foreign Investnemt and Revitalize Argentina’s Economy.