Argentina's Macrisis: Wholesale inflation soars to 74%

[sandensea]

Data published yesterday by Argentina's National Statistics and Census Institute (INDEC) show that wholesale prices soared by 16% in September, and 74% from the same time last year.

This was the worst monthly figure for Argentina since a 20% increase in April 2002, at the depths of the country's last economic collapse.

Last month's reading was an abrupt jump from the 4.9% recorded in August. Wholesale prices rose nearly as much in September as in all of 2017, during which they rose 18.8% (an average of 1.5% a month).

Wholesale inflation in September - particularly a 24.2% jump in import prices - was propelled primarily by a soaring dollar, which rose an average of 28% against the peso last month.

The peso has lost around half its value since the carry-trade debt bubble - known as the "financial bicycle" - promoted by the Mauricio Macri administration collapsed in April.

The sale of short-term bills at rates averaging over 70% has helped calm currency markets during most of October; but near-record interest rates have also excacerbated the sharpest recession since the 2002 crisis.

Retail inflation has lagged behind wholesale inflation during most of the 2018 crisis.

Consumer prices rose 6.5% in September, and 40.5% from the same time last year - around twice the rate of wage increases.

The steep difference from the 74% at the wholesale level was absorbed by retailers already reeling from utility hikes averaging 1000%.

Real sales, according to the Argentine Medium Business Chamber (CAME), fell 9.2% in September compared to a year earlier and over 16% since Macri took office in 2015. Some 17,000 shops employing over 71,000 have closed since the current crisis began in April.

At: https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=https%3A%2F%2Fwww.pagina12.com.ar%2F149654-inflacion-al-por-mayor&edit-text=

"We're closing": A bakery in the Pampas town of Chacabuco adapts Macri's 2015 campaign logo to their current situation.

A debt bubble fostered in 2016 and '17 popped in April, leaving the now severely indebted country in its worst crisis since a similar debt bubble collapsed in 2001.

[Judi Lynn]

1. Macri has to have his military threats in place to keep the people from overt rebellion.

Acts like his active political persecution, torture, and murder already committed had to have been given ample play so people would "get the message" and start crumling in fear, leading to national paralysis, the goal of all dictators. Submission. Complete surrender.

It can work for a while, but they always do lose, in the end. Economies clearly can't last long with these greedy monsters sucking the life's blood from a society.

So it's the worst since 2001. I don't think anyone wonders why it there was a rush to a trusted leader like Kirchner when they could take it no longer, for the answer. His untimely death left a new President in place who was simply not prepared for the heat she would have to take when the fascists decided a woman couldn't fight them as hard as the former and went all out to destroy her, and are still trying to destroy her, to keep the people from bringing her back. ]

Who could be so blind he/she hasn't learned how this goes, anyway?

Thank you, so much, sandensea.

Your completely solid information means more to those of us who are NOT fascists than you can possibly imagine.