ARGENTINA ECONOMY: On a knife edge

ARGENTINA ECONOMY: On a knife edge

When Argentina’s government said this February that inflation was higher than it previously thought, bonds rallied by up to 21%. That may be odd, but this is Argentina. The news came as a relief. 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

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