Eat humble pie? Not a crumb. After lying about inflation for seven years, Buenos Aires last night revealed a new and more credible statistical series. This, said Axel Kicillof, the economy minister (pictured), was not because the old inflation numbers were wrong. Rather, it was because they needed to be updated. Why? Because Argentine consumption habits had changed, he explained. The government’s new inflation numbers, he added, provide “an X-ray of another country.” Continue reading »
Move over Repsol. The government in Buenos Aires is now directing its stinging verbal attacks at Shell.
After Argentina devalued the peso, consumer prices have begun to rise – a logical consequence. Or not – Cristina Fernández, the president, likened retailers and suppliers that have hiked prices to pilferers on Tuesday night.
And her ministers have taken specific aim at Shell, the oil company also accused by Axel Kicillof, the economy minister, of a “speculative attack” on the peso during its preliminary dive on January 22. Continue reading »
A timely new poll has come our way, commissioned by Graham Fisher & Company for the Emerging Markets Trade Associations, a collection of investors focused on debt. Poliarquía Consultores asked 1,000 Argentinians for their views on the economy, the problems facing the country and president Cristina Fernández de Kirchner.
The three biggest concerns for Argentines are crime, the economy and inflation and voters, the pollsters found, are unhappy with the way the government is tackling them. Continue reading »
The tomato once enjoyed a quiet life in Argentina, mixed with lettuce and onion or grated carrot in a traditional accompaniment to a juicy steak. No longer. Today, it is at the centre of an economic ruckus involving a supermarket worker, President Cristina Fernández and her ministers. Continue reading »
Tough times for consumers in Argentina. Thanks to a 35 per cent tourist tax, many are swapping the white sands of Uruguay and Brazil for local beaches during January’s summer holidays (though the head of the federal tax agency found his way to a five-star hotel in Rio).
And now carmakers have begun to release prices under the impuestazo, a whopping new tax on top-end models.
Continue reading »
The bibs are back: printed with the slogan “we monitor the prices” and worn by young pro-government activists, the foot soldiers of Argentina’s losing battle against soaring inflation.
After announcing the measure alongside its bibbed army of supporters, the government implemented a new set of price controls on Monday, a precursor to its annual war with union leaders over wage rises. Continue reading »
Guillermo Moreno is at it again. Argentina’s business community lives in perpetual fear of receiving a telephone call from the government’s notorious commerce secretary. But he reserves special treatment for economists.
This time it is the turn of Orlando Ferreres to be investigated, after he had the temerity to publish an inflation index that differed drastically from the government’s widely-questioned figures (he thinks prices are rising more than twice as fast).
Continue reading »
Picasso famously had his blue period. Argentina has its blue dollar – as the black market exchange rate is known. And that’s good news for art collectors and visitors to the ArteBA art fair which kicks off this week.
Managing Argentina’s de facto multiple exchange rates is itself a fine art. But now art itself, among other things, has suddenly become cheap – provided people don’t use the official rate. Continue reading »
What’s that phrase? If you’re in a hole, stop digging?
Hernán Lorenzino, Argentina’s economy minister (left), abruptly terminated an interview with a Greek television journalist, Eleni Varvitsioti, after she pressed him on the tricksy issue of inflation in Argentina. Continue reading »
Argentines would love to save in dollars rather than a peso ravaged by inflation and whose value is on the skids, but the government won’t let them.
Demand for gold – another traditional safe haven – has surged. Banco de la Ciudad, the only bank to sell to individuals, says it can hardly keep up.
So … Enter the bitcoin? The virtual currency is emerging as the latest inflation refuge – and Bloomberg reports that TradeHill, a US-based bitcoin exchange, is now planning to open an office in Argentina where demand is fastest in the region. Continue reading »
Is “no gracias” to Visa and Mastercard on the cards in Argentina?
The possibility of supermarkets only accepting a new supermarket credit card (valid for use in all big chains, the thousands of Chinese-run neighbourhood stores, some electronic and white goods retailers and even petrol stations at YPF, the state oil company) sparked a slew of headlines over the weekend in Argentina.
The idea came up last Friday at a meeting with Guillermo Moreno , the internal trade minister. Continue reading »
Argentina has an impressive ability, it seems, to bite the hand that feeds it: farming.
It’s an impression reinforced by Rabobank’s latest Argentine agribusiness outlook. Argentina’s farming sector, which makes up nearly 60 per cent of total exports ($47bn in 2012, and that was a bad year because of drought), is a key economic breadwinner, bringing home the dollars that are essential to an economically choppy country still with debt in default and cut off from international capital markets. Continue reading »
King Canute commanding the waves to go back to Bosham
Inflation-hit Argentina has just agreed a new round of price freezes with major supermarkets, neighbourhood stores and white goods retailers until April 1.
Fine… except that even Cristina Fernández, the president, is sceptical that such accords actually work and even some of the participants see it as a futile, Canute-like exercise. Continue reading »
The gap between how the outside world, and how the government, see Argentina, appears to be growing.
This week, Moody’s Investors Service downgraded its outlook for Argentina’s B3-rated peso and foreign-currency government debt from stable to negative, suggesting a full-blown downgrade may not be far away. The government couldn’t agree less. Continue reading »
The head of Argentina’s government in the lower house of Congress last month made a telling remark. Julián Domínguez said Cristina Fernández, the president, “is the first to recognise the reality on the street”.
Well that must explain why she has hiked child benefit by 26 per cent then. Apparently it means that government itself now believes that inflation – which the state statistics office says is running at 10 per cent and which the government is budgeting at 8.9 per cent for 2013 – is higher even than the opposition says. Continue reading »