He director of the National Institute of Statistics and Censuses (INDEC)Marco Lavagna, warned today that “it remains to be said that the battle against inflation is over” and confirmed that the organization is working on an update of the Consumer Price Index (CPI).
The national official also emphasized that in his four years of management at the head of the statistical body “he never received pressure” in relation to the different statistics he produces.
“We are still in that up and down when there is a correction in relative prices. Clearly with respect to the 25% figure (from December 2023) it fell, but I would be cautious. Beyond the statements of the minister (of Economy, Luis Caputo ) and the President (Javier Milei) who show this drop in inflation, It still remains to be said that the battle against inflation is already over“said the economist.
Regarding the public discussion about inflation, Lavagna defended his task: “There are a lot of consulting firms and organizations that make projections and it is good that there are, but once INDEC speaks that is the official number.”
Changes in the INDEC: what is known so far
In radio statements, the economist confirmed that he works in a update of the Consumer Price Indexalthough it did not specify when it will begin to be implemented.
“The inflation index is made on the basis of a basket that reflects what we Argentines consume. Habits have changed and the basket we are using is a little old and it is necessary to update them,” said Lavagna.
In that sense, he added that “it is a technical discussion that is carried out all over the world and for this we are working with the IMF,” which is the one who validates the methodologies.
In relation to the divergences that are usually observed with the results of the City of Buenos Aires, Lavagna specified that the Buenos Aires district “has a more updated basket made with the household spending survey carried out by INDEC in 2018which is the one being used to adapt the index”.
The former national deputy explained that the delay in the adaptation process is due to the fact that it must be made compatible for the entire country.
Regarding the information gathering process, Lavagna explained that ““In the case of regulated prices such as rates, public services, transportation or prepaid, it is done by telephone or based on resolutions and covers the entire country.”
“In what is typical of mass consumption, it is done with surveyors who go to all the businesses, supermarkets, neighborhood stores, ‘Chinese’ and also the online channel. In total we survey more than 13 thousand prices per month“he concluded.
Source: Ambito
