Is Inflation in Argentina Above 100%?

A few days ago Lars Christensen posted at The Market Monetarist an interest post commenting whether or not Argentina could be facing a real inflation above the 100% threshold.

Officially inflation in Argentina is around 11%. However, anybody who has just a minimum of knowledge about the Argentine economy knows that the Argentine inflation numbers are as real as Mickey Mouse. Inflation in Argentina is not 11%, but much higher.

Lars thinks the inflation may be even worse than that of the so-called Congressional Index (around 25%). Given the presence of price controls and Mickey Mouse official estimations, how can we proxy what inflation could really be in Argentina? The problem with estimations like that of the Congressional Index is twofold: (1) lack of resources for a comprehensive estimation and (2) it captures changes in prices under a price control environment, not changes in free prices.

When the post was uploaded I was travelling, and couldn’t get into it until a couple of days ago.

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