Milei’s Inflation Miracle Distorted by Obsolete Items in Index

[Avocado]

They need to redo the inflation index! So many things need to be changed out. Real inflation is much higher. Even INDEC agrees it needs to be changed.

https://finance.yahoo.com/news/milei-inflation-miracle-distorted-obsolete-134016116.html

 

[earlyretirement]

They need to redo the inflation index! So many things need to be changed out. Real inflation is much higher. Even INDEC agrees it needs to be changed.

https://finance.yahoo.com/news/milei-inflation-miracle-distorted-obsolete-134016116.html

Thanks for posting. I have long argued that all countries have higher inflation than reality due to stripping out essential things out of the basket of goods. Same thing happens in the USA.

 

[Blockchain]

They need to redo the inflation index! So many things need to be changed out. Real inflation is much higher. Even INDEC agrees it needs to be changed.

https://finance.yahoo.com/news/milei-inflation-miracle-distorted-obsolete-134016116.html

Interesting they include newspapers, cigarettese and telephone lines in their index! No one has telephones anymore. Everyone just uses their cellphones. I rented several Airbnbs and none of them had phone lines. Do people even use these in BA anymore besides offices?

Only reason they wouldn't adjust is to keep the inflation numbers artificially lower.

 

[Wally]

Thanks for posting. I have long argued that all countries have higher inflation than reality due to stripping out essential things out of the basket of goods. Same thing happens in the USA.

Argentina has always lied about inflation because a higher number means bigger payments on inflation linked bonds. That is how Argentina finances itself. You will recall all the lying under Kirchners. It's not as bad now but I had no idea they still used outdated things like this. If the head of INDEC admits it needs to be recalculated you know it is wrong. Doubt they will fix it anytime soon or the inflation #'s would go up.

 

[Uncle Wong]

Thanks for posting. I have long argued that all countries have higher inflation than reality due to stripping out essential things out of the basket of goods. Same thing happens in the USA.

Yep the same things happens in the United States with them not including several things in the index.