Thursday, August 10, 2006

Economy: Argentina's inflation rate set to fall

Argentina's Economy Minister Felisa Miceli, has said that consumer inflation will fall significantly this year from its unexpectedly high rate of 12.3 percent in 2005. He said that government-led price accords and its policy to keep salary increases within reason cooled expectations.

Argentina tackled inflation mainly by striking accords with manufacturers and retailers to lower and freeze prices on a host of basic goods. In April the government set a ceiling for private wage increases by announcing 19 percent raise for public employees.