Gov't repeats itself to explain an inflation lashing economy

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In different scenes, inflation hit the headlines on Monday.

Argentine economy minister Carlos Fernandez made his debut announcing April tax collection. In his first public appearance, he stressed that fiscal income had grown 52 per cent. He forgot to say that inflation has already become the driving force of collection. From that piece of information, one can infer that price rise is nearly touching 30 per cent interannual.

Quick to react, as it always happens when money is concerned, union members are already getting ready for a renegotiation of join sessions as of June.

None of this affects internal trade secretary Guillermo Moreno, since he is making April price report in which Argentine Statistics and Census Institute (INDEC, in its Spanish acronym) will show an increase of nearly 0.8 per cent in cost of living.

This is another repetition, in this case, the strategy of showing month after month a variation lower than 2007's.

Another anti-inflationary policy that comes on stage is call to picketers, who will act as watchmen of great companies' prices.

Argentine president Cristina de Kirchner admits increases, though, as usual, she blamed once again corporations and farming sector for all ills afflicting the country nowadays.

What cannot be denied is loss of purchasing power observed in food, rents, community fees, school instalments and clothing, for example. Controlled goods run short. As time goes by, cash is worth a bit less and high-denomination bill, ARG$100, only lets people buy a few things in supermarkets.

Will government opt for launching a new currency as anti-inflationary policy, like it happened back in the 80's or as Hugo Chavez did? Or will it issue a bill of ARG$500?

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