Argentine supermarkets freeze prices after IMF censure

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BUENOS AIRES: Supermarket chains in Argentina agreed to freeze their prices for 60 days in an attempt to rein in inflation, officials said Monday.

The move comes after the International Monetary Fund censured Argentina on  Friday for failing to supply accurate economic data to measure inflation.

The agreement between the government of President Cristina Kirchner and the  Association of United Supermarkets — which includes US-based Wal-Mart and  France’s Carrefour chain — is retroactive to February 1 and extends to April 1.

Official Argentine statistics are sharply different from those private  sector economists issue.

For instance, last month the government said that inflation in 2012 was  10.8 per cent, while a group of private economists who collate their data put  the rate at 25.6 percent.

Buenos Aires benefits from understating the data because a large part of  its sovereign debt is indexed to inflation.

Customers have been complaining about the constant rise in the price of  food staples.

Economy Minister Hernan Lorenzino said Saturday that Argentina would start  using “a new consumer price index to replace the current measure that has  supposedly caused so many problems for the IMF,” to start in the last quarter  of 2013. -- AFP
 


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