The resignation of Marco Lavagna, head of Argentina's national statistics agency Indec, has intensified scrutiny over the country's inflation index. Lavagna's departure follows the Milei administration's delay in implementing a new inflation calculation method, which could impact economic figures this year. The new method, based on recent spending patterns, aims to replace outdated surveys but has been criticized for potential data manipulation.
The delay in adopting the updated inflation index has already affected Argentina's financial markets, with the S&P Merval stock benchmark experiencing an 8% selloff. Analysts warn that this uncertainty may also influence the dollar-peso exchange rate as the currency transitions to a free-floating system. Meanwhile, food and beverage prices in Argentina surged 2.5% in early February, marking the largest weekly increase since March 2024.
Argentina's Inflation Index Faces Scrutiny After Statistics Chief Resigns
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