Argentine inflation: virtual reality

With politics again sparring with mathematics, Argentina’s Minister of Economy and Finance Alfonso Prat-Gay told the annual assembly of the Latin American Federation of Banks in Buenos Aires that in the last three months inflation has stood at 1.3% per month which, projected to the end of 2017, would translate to about 16% per year. “That’s below what we promised we would achieve by the end of next year,” he said. What Prat-Gay avoided saying to the mainly foreign audience is that the projections anticipate that inflation in 2016 – the first year of operations for his economic team – would be around 40%. Curiously, on the same day the minister made his remarks to the bankers, it was announced that […]