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Weekly Report - 7 February 2013 (WR-13-05)

ARGENTINA: In a hole, digging

Two weeks ago, President Cristina Fernández encouraged consumer activism as the best way to combat inflation. “As has been demonstrated with the passage of history, forcing or freezing doesn’t work,” she said. On 4 February, the secretary of interior commerce, Guillermo Moreno, reached a verbal, non-binding agreement with Argentina’s major supermarket chains to fix prices until April. Most analysts agree with Fernández’s initial assessment and expect the price fixing to lead to shortages, and a rapid increase in inflation come April.

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