Consumers Expect High Inflation in Argentina

The median of consumer expectations for year-on-year headline CPI inflation over the next 12 months in Argentina is 20%, well above government estimates of 8.2%, according to the February Universidad Torcuato di Tella survey cited by Credit Suisse. This is the seventh consecutive month in which the survey has shown the expectation for inflation at 20%, well above the official data, according to the bank. “The fact that consumers expect inflation to be much higher than what the government currently reports partially explains why the labor unions in Argentina are calling for nominal wage hikes of about 30%,” says CS.