When inflation is not really *inflation*

SaraSara

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The Finance minister, Boudou, says that in Argentina "there is only price tension, but not inflation".

Does anyone know what that means?
 

EliA

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From Investopedia:

The phenomenon by which the seller of a particular good, service or security desires to maximize the selling price, while the buyer desires to minimize the purchasing price...

Sellers will be asking for more than what the vast majority of buyers are willing to pay, which will drastically reduce the number of exchanges made within the market.

~~

Basically the minister is saying it's everyone's fault for being too greedy when selling their own stuff but too cheap when buying other people's. Sounds like deflection of responsibility to me... blame the people to avoid taking action.
 

marksoc

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Of course there is inflation. It means a general increase of prices. "General" being the key word. If meat goes up by 40% that is NOT inflation. If everything goes up in average X% in a year, that is inflation. Despite Clarin's intentions, inflation has not been recently (and is not going to be) nowhere near 30%.
 

citygirl

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Mark:
Seriously, I would love to live in the world you are living in. Because in my world, prices have indeed gone up over 30% on food, beverages, taxis, health insurance, etc.
My health insurance a year ago was 330 pesos. It is now 550 pesos. The cab ride I took yesterday to the riding club was 9 pesos 6 months ago. It is now 14. My favorite dish in my neighborhood cafe used to be 19 pesos (8 months ago). It is now 24.50. I could go on and on.
 

bigbadwolf

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marksoc said:
If meat goes up by 40% that is NOT inflation. If everything goes up in average X% in a year, that is inflation.
If meat is (say) 5% of your budget, your overall cost of living will have gone up by 2%. Of course it has an inflationary impact. With regard to government stats, meat will probably be included in a basket of commodities, the fluctuating prices of which will be used to calculate official inflation.
 

esllou

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marksoc said:
Of course there is inflation. It means a general increase of prices. "General" being the key word. If meat goes up by 40% that is NOT inflation. If everything goes up in average X% in a year, that is inflation. Despite Clarin's intentions, inflation has not been recently (and is not going to be) nowhere near 30%.
I would like to subscribe to your comedy newsletter. Oh, and I'll have 20g of whatever you're smoking.
 
bigbadwolf said:
If meat is (say) 5% of your budget, your overall cost of living will have gone up by 2%. Of course it has an inflationary impact. With regard to government stats, meat will probably be included in a basket of commodities, the fluctuating prices of which will be used to calculate official inflation.

. . . c h e c k m a t e . . . . ? savvy . .
 

SaraSara

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A meal at my neighborhood restaurant was forty-five pesos last September. The EXACT same meal is now sixty-two pesos. The government assures us there is no inflation, so that must be just price tension.

As they saying goes: "El mismo perro con distinto collar". (Same dog, different collar)
 

ElQueso

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Neighborhood expenses for me - from $550 pesos 19 months ago to $1100 pesos - not including the "extraodinary" expenses of putting a wall around the neighborhood (total actually $1700 pesos!!).

Health insurance starting at $375 up to $630 in two years.

Remis service per month for regular morning service from $220 pesos to $330 pesos.

Gas - I can't remember the exact prices, I admit - but it has gone up quite a bit.

Everything is going up - it's just that meat made a spectacular increase recently. If there is no inflation (or at least massive price raises by almost EVERYONE), I just can't understand how with the dollar having risen against the peso last year and me having cut back everywhere I can to save money, I am still spending more per month now than I was two years and three years ago...

Marc - you have to stop believing that INDEC has any basis in reality when it reports numbers, at least under this administration.

And whether we want to call it tension or inflation, the result is the same. The government is only trying to blame others for its failed policies, including spending dollar reserves to prop up a falling peso and printing money by spending more than it actually has instead of cutting budgets, not fighting coima (which causes public works projects, for example, to cost much more than they should). So on and so forth.

When there are independent associations of merchants here who say that inflation is 3-4 times higher than what INDEC says - believe them rather INDEC. It's much closer to the truth.
 

Vandalay

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marksoc said:
Of course there is inflation. It means a general increase of prices. "General" being the key word. If meat goes up by 40% that is NOT inflation. If everything goes up in average X% in a year, that is inflation. Despite Clarin's intentions, inflation has not been recently (and is not going to be) nowhere near 30%.
Dude, I don't know if you are trying to just get everyone going or you actually believe this stuff you are writing.

Even the gov't knows that INDEC is making up numbers. They do it, so their interest payments on inflation linked bonds are lower. It's not just Clarin or La Nacion that is reporting inflation, as far as I know, every independent source from periodicals to investment banks put Argentina's inflation well above INDEC's numbers.
 
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