Argentina Inflation Falls 0.5%, Says INDEC

Argentina’s consumer prices rose 0.5% in July, bringing the 12-month figure to 8.6% from 8.8%, INDEC, the country’s troubled statistics bureau reported late Monday. Instead of encouraging the market, the figures caused a drop in local assets, according to a Goldman Sachs report. “The low inflation reading was interpreted as evidence that the government will not correct the alleged methodological vices in the calculation of the inflation figures,” says Goldman. INDEC’s first inflation report under new finance minister Miguel Peirano and new director of INDEC Ana María Edwin, was viewed by the market as inconsistent with “anecdotal evidence and alternative inflation indicators,” says Goldman. Local press reports highlights the expectations of private sector economists that point to inflation of well over 1% for the month-on-month period.