When Argentina’s government said this February
that inflation was higher than it previously thought, bonds
rallied by up to 21%.
ARGENTINA ECONOMY: On a knife edge
Argentina has so far dodged another long-predicted financial crisis. Many believe it might just avoid the worst this time—even if that means via the ballot box. By Charles Newbery
That may be odd, but this is Argentina. The news came as a
The government said consumer prices rose 3.7% over the month
of January compared with December, not far off some private
sector estimates of close to 5%. Many analysts had feared less
than 3%, which would have been a sign that
Argentina’s president, Cristina Fernández
de Kirchner, would continue to downplay inflation as a concern
despite, some warnings it could surpass as much as 40% on an
annual basis this year.
While higher inflation is a worry, the cheer was rooted in
Argentina’s admittance of the problem and then
coming clean — at first glance — after seven
years of underreporting consumer price data.
It may be too soon for applause, however. Some say a...
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