Argentina fights inflation after 5.8 p.c. rise

Press, 15 April 1980, Page 12

Argentina fights inflation after 5.8 p.c. rise

NZPA-AP Buenos Aires The consumers price index in Argentina, which has the world’s highest inflation rate, rose 5.8 per cent in March, the Economy Minister has reported. The increase, moderate by Argentinian standards, is a sign that the Government’s anti-inflation strategy is working. In six months the projected annual inflation rate has declined from 172.2 per cent to 119.4 per cent. The Government last year began a five-year plan to open Argentina’s economy to imported goods, forcing local manu-

factuters to produce more cheaply. Import duties on consumer items were reduced from an average 95 per cent to 60 per cent and lower.

This policy has had an even more dramatic effect on wholesale prices, which rose only 3.8 per cent last month. Construction costs went up 5.1 per cent in March. The Government has made imports even more competitive by supporting the peso at an artificially high*rate against the dollar, but this has made Argentina an expensive place to live for foreigners and others earning dollar sal-

aries. Inflation in dollar terms was 3.1 per cent in March, and 68.2 per cent during the last 12 months.

Submarines move The United States Navy has announced that it plans to pull all eight of its Polaris missile submarines out of Guam, starting this July. Navy officials said the submarines would be replaced by more powerful Trident submarines, to be based in Bangor, Washington. The pull-out is expected to take about 15 months and,should be completed by September, 1981. — Washington.