Tuesday, February 5, 2013

Argentina Death Spiral: Supermarket Price Freeze to Mask Inflation

From the BBC:
Argentina pegs supermarket price rises for two months
The Argentine government has put a temporary price freeze on all products sold in the country's main supermarket chains to try to fight inflation. 

A group representing two-thirds of Argentina's supermarkets agreed to keep prices steady until the first of April.

The move comes days after the International Monetary Fund (IMF) censured Argentina for issuing inaccurate economic data.

The government says inflation is below 11% but economists say it is double.
Analysts have accused Argentina specifically of understating the rate of inflation since 2007 in order to keep interest rate payments on its debt low, and to flatter the political regime....MORE
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