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07/09/2007 | Making Data Easier To Swallow

Jude Webber

Massaging inflation data to hide uncomfortable truths is nothing new in Argentina. In the 1970s, the government dreamed up an inflation index minus beef - the nation's favourite food - to make it more palatable.

 

But government interference in data from the statistics office, Indec, has been more apparent this year - leading the media to style the office "Indek", with a K, after President Nestor Kirchner.

Last year's inflation rate squeaked in below double digits, at 9.8 per cent, but with price pressuresrising, key officials have been replaced with seemingly more pliable functionaries. Indec has had four bosses in the past six months alone.

Guillermo Moreno, the internal trade secretary who forced changes at Indec, now faces legal charges of violating confidentiality over its data-gathering.

The official consumer price index - important for holders of inflation-linked bonds - has lost credibility.

The government promises an overhaul of inflation methodology, but not until after next month's election.

Financial Times (Reino Unido)

 


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