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5/10/17

Argentine inflation is not coming down under Macri

Today Argentina's INDEC reported inflation for the month of April at 2.6%, plenty above expectations (once again). Yeah, that's just for the month, it means the annualized inflation rate is at 27.5% and in just the first four months of 2017 it's totalled 9.1%. To put that into context, the Central Bank's forecast for 2017 inflation was at between 12% and 17%, which means that they only have another 7.9% to play with for the eight months left of the year. 

Don't expect this to be reported much by the Northern press, who have fallen meekly into line and are giving "pro-business" Macri a permanent free pass, a big change from the constant kicking they handed out to CFK for similar macro figures. But when Macri "unexpectedly" flops in the 2017 mid-term election and his presidency turns into an immediate dead duck, it's going to be a whole lot harder to ignore the plain facts of Argentina's failure to turn around under Macri. For more on how CFK is leading in the polls for the key mid-terms, read here.