Photo via Eleco.com.ar

Argentina’s consumer prices rose 1.6% in November, according to the government’s INDEC statistics agency. The figure represents a 0.8% drop compared to October’s rate of 2.4%, which many attribute to the increase in the price of gas both businesses and private homes.

The central cause behind this month’s rate can be found in the increase in the prices associated with home supplies and food, which went up by 2.6% and 1.9%, respectively. The food sector has seen the steepest hikes throughout the year, that is if you exclude the controversy surrounding the increased costs of utility bills.

Government authorities assured the public that the second semester will end with a monthly average inflation of 1.5%, a rate that, if maintained throughout the next year, would mean staying on track with its goal of keeping inflation under 20%.

The number, however, is substantially lower than the estimates from the City of Buenos Aires’ and Congressional indexes which place inflation at 2% and 1.9%, respectively. Private consulting firms also estimated that November’s numbers would come in with an inflation rate closer to 2%.

Since the Government declared a “statistics emergency” when taking office, in an attempt to fix Indec’s discredited data sets, the report does not include a comparison with the numbers from this same month last year.

If we are to take the numbers presented by the parallel index produced by the opposition in Congress — commonly referred to as “Congress inflation” — as being accurate the accumulated inflation for 2016 would come to around 40 percent, the highest number we’ve seen in 14 years.