Preliminary analysis of the new INDEC National CPI

We are pleased to invite you to read the new paper on Ideas de Peso, a platform where economists of the Central Bank share their opinion:

The new INDEC National CPI will be published in July. This indicator shows an extension of the CPI GBA geographical reach that will allow to count on a measurement of nationwide inflation 1 . This will be the first time the INDEC publishes an inflation index with such geographical reach, and the BCRA shall use it to make monetary policy decisions, as s announced when the°Inflation Targeting Regime was launched in last September.

In our opinion, assets shall have a greater share than private services in this new national index, if compared to CPI GBA weights published by INDEC since June 2016. Notwithstanding, the differences in consumer basket structures should not be significant in the measurement of prices at general level.

The information collected from urban agglomerations shall be grouped in six geographical regions: GBA, The Pampas, Argentine Northwest (NOA), Argentine Northeast (NEA), Cuyo, and Patagonia. The National CPI shall be created on the basis of a weighted average of regional indexes depending on their share in the total of household expenses 2.

June 12, 2017

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