Sunday, February 23, 2014

Inflation in Argentina

Inter Press Service has a report on the inflation problem in Argentina and the price control measures that Cristina Fernández' government is using as one of its tools to control it (Fabiana Frayssinet, Rising Prices Threaten to Increase Inequality in Argentina 02/20/2014):

The price watch list is the result of an agreement between the government of President Cristina Fernández and chains of suppliers and traders, to offer food drinks, cosmetics, cleaning, educational and construction products at accessible prices.

Mobilising against speculative prices emerged after the devaluation of the Argentine currency, the peso, which in January alone was devalued by more than 34 percent against the dollar, its largest fall since 2002, triggering indiscriminate price hikes.

In 2013, the official value of the peso fell by 25 percent against the dollar and the parallel peso by 47 percent, according to consulting firms.

“It’s time for all sectors to take their share of responsibility for things to keep working,” said President Fernández, criticising influential economic interests she blames for speculative attacks and capital flight.
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