Economists' 'Patriotic Feat' Against Argentina's Inflation Data Manipulation

Buenos Aires, Argentina – The recent passing of economist Guillermo Rozenwurcel has brought to light a significant event in Argentina's economic history: a bold protest against government manipulation of inflation data. In early 2007, Rozenwurcel, alongside Alfredo Juan Canavese and Juan José Llach, authored a concise yet powerful document titled "Cuidemos al Indec" (Let's Take Care of Indec).

This initiative was a direct response to the government's decision to "doctor" the official estimates of consumer price increases. The economists not only conceived the idea but also drafted the text and rallied support, gathering signatures from a considerable number of their peers. The document became a testament to a rare moment of consensus among economists in Argentina, with over 400 ultimately signing on, despite fears of reprisal from government officials.

The article contrasts the official Indec (National Institute of Statistics and Censuses) figures with those provided by Graciela Bevacqua, a former official who was displaced after the intervention. By January 2007, if the consumer price index (IPC) was set at 100, by October 2015, Indec reported it at 259. In stark contrast, Bevacqua's estimates placed the IPC at 727 for the same period. These figures represent equivalent monthly increases of 0.9% and 1.9%, respectively.

Beyond distorting inflation figures, the article notes that the government's actions negatively impacted other essential economic indicators, such as poverty rates, which rely on inflation data as an input. Furthermore, the authorities allegedly made life difficult for Bevacqua and pursued legal action against those who dared to publish private inflation estimates. Rozenwurcel is remembered not only for his professional contributions but also as a kind and engaging individual, who had previously overcome significant health challenges.

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Let's Take Care of Indec