Finally, Argentina is in the news too. The old bugaboo – inflation – is coming back. The government controls the figures. So, neither investors, nor economists, nor consumers have much faith in them. Shoppers say they see prices rising steeply. Experts say the inflation rate could be as high as 15% already.
The economy is booming – at about 8% annual GDP growth. Capacity is stretched. It would a miracle if there weren’t inflation.
“Argentina goes through a crisis about once every 10 years,” says our contact in Buenos Aires. “Our last real crisis was in 2002. We’ve got a few more years to go.”
Markets and Money