Argentine Finance Minister Fights for Inflation

Argentine finance minister Martin Lousteau is locked in a tussle for real inflation data that could cost him his job. He is going head-to-head with internal commerce secretary Guillermo Moreno over the accuracy of the February index which was supposed to be published next week. Fausto Spotorno, chief economist at consulting firm OJF & Asociados in Buenos Aires predicts that whenever it is released, February CPI will draw criticism. “This doesn’t help to bring down inflation expectation,” the analyst says. “Uncertainty generates more inflation.” Goldman Sachs sees as a positive development that the government has postponed the release of the index. “It is still unclear how this story will end, whether Min Lousteau will ultimately prevail in the ongoing power struggle, and whether a new, more credible index will be released any time soon,” says the shop.