June 8, 2006

 

Argentina reaping the fruits of beef ban as inflation cools


 

Argentina's self-imposed ban on beef exports to rein in inflation is beginning to see results as monthly inflation rate in May fell to 0.5 percent, compared with 11.4 percent the same time last year, according to the National Statistics Institute.

 

Critics had pooh-poohed the self-imposed ban and said prices would rise later this year when the government could no longer hold prices down.

 

Argentina relaxed its beef ban to allow exports in greater quantities on Jun 1.

 

The country has the highest per capita consumption of beef in the world and beef accounts for a large part of household budgets.

 

Beef is also the biggest single item on the national consumer price index, outweighing even home rentals.