IMF mission on Argentine price data starts Weds.

WASHINGTON, Dec 6 (BestGrowthStock) – The International Monetary
Fund will start working on Wednesday with Argentine officials
to create a new nationwide consumer price index, an IMF
spokesman confirmed on Monday.

Argentina’s inflation data is widely discredited and
President Cristina Fernandez unexpectedly asked the IMF, one of
her favorite rhetorical punching bags, to send a technical
mission to help design the new price gauge. [ID:nN23144118]

The IMF mission will be led by Robert Rennhack, assistant
director at the Fund’s Western Hemisphere department, and will
include three statistics experts.

Although investors were pleasantly surprised by the move to
mend ties with the IMF and address doubts over inflation data,
they will not benefit directly from the new index since
inflation-linked bonds will still be adjusted using the current
CPI from the Buenos Aires metropolitan area. [ID:nN24262702]

The government is accused of under-reporting inflation for
the last four years for political gain and to reduce payments
on inflation-indexed debt.

Private analysts estimate consumer prices will have risen
25 percent to 30 percent by year’s end, whereas the government
reported 11.1 percent annual inflation through October
(ARECI09: ).

Argentine stocks and bonds rose on Monday in thin trade on
investor optimism over the IMF mission and the government’s
imminent negotiations to repay some $6.5 billion in defaulted
debt to the Paris Club of creditor nations. [ID:nN02220061]
(Reporting by Lesley Wroughton; Writing by Hilary Burke;
Editing by Diane Craft)

IMF mission on Argentine price data starts Weds.