Photo: Casa Rosada
All Argentine consulting firms that calculated an inflation rate higher than the official 10.9 per cent has received a letter from the government today. They’ve been given 48 hours to explain their calculation or face a $125,000 fine, according to the FT.Independent estimates put last year’s inflation rate at 25 per cent, with 30 per cent inflation in 2011.
“This is an attempt to shoot the messenger,” said Nicolás Bridger, at consultancy Prefinex, which did not receive the missive from the Director for Trade Loyalty.
“It looks like they’re trying to discredit these (private) indices now salary negotiations (for 2011) are getting under way,” he added.
One unusual factor is that Argentina has dealt with soaring inflation for years — businesses respond simply by hiking salaries and prices. 11 per cent could be a manageable figure, but 30 per cent will be tough.