By Eliana Raszewski and Silvia Martinez
Oct. 14 (Bloomberg) -- Argentina’s consumer prices rose 0.7 percent in September from the previous month, led by increases in costs for clothing, education and food and beverages.
Annual inflation quickened to 6.2 percent last month from 5.9 percent in August, the National Statistics Institute said today.
Private economists and politicians such as Vice President Julio Cobos have questioned the country’s inflation reports, saying that the government has underreported price increases since former President Nestor Kirchner made personnel changes at the institute, known as Indec, in January 2007. The government has denied any manipulation.
A research department at Buenos Aires University reported that prices rose 1.2 percent last month, and the Ecolatina research company said inflation was 1.3 percent in September.
“They are lying with the inflation report,” said Nicolas Salvatore, a professor of macroeconomics at the Buenos Aires University and a coordinator of the research. “Argentina has had wrong economic policies that led to an inflationary process and now to a stagflation.”
Salvatore, who works on the inflation report with Graciela Bevacqua, a former director of the consumer price index department at the Indec until the changes in January 2007, forecasts South America’s second-biggest economy will contract 3 percent this year, while he sees inflation slowing to 14 percent from 23 percent in 2008. Indec reported that consumer prices last year rose 7.2 percent.
In a bid to restore faith in the accuracy of the statistics, the government has appointed a board of academics to review the prices of goods and services that make up the index. Economy Minister Amado Boudou said the review would put an end to questions about the official data.
To contact the reporter on this story: Eliana Raszewski in Buenos Aires at eraszewski@bloomberg.net; Silvia Martinez in Buenos Aires at smartinez19@bloomberg.net.
Last Updated: October 14, 2009 17:18 EDT
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