Indec Will Create New CPI

Indec, the Argentine government agency responsible for statistical data, says it plans to replace its consumer price index by 2013. Argentina is the only country in the G20 which does not receive the IMF’s Article 4 review of its economic statistics, and has not since 2006. Most economists believe the Indec to wildly underestimate the country’s rate of inflation, thought to be close to 25%. According to official government statistics, inflation is only running at 8%-10%. However, Indec says the new IPC will not be a true measure of inflation, since it will be only one metric that will need to be viewed alongside other numbers. The IMF completed a technical assistance mission to Argentina in April, at the conclusion of which it provided the government with a list of recommendations for the design and methodology of a new national CPI.