There are doubts in Argentina over the CPI data for February after allegations of tampering by the Economy Ministry. The market expects the CPI inflation to be 0.7% mom. Congress may hold an inquiry whether there was political pressure on the National Statistics and Censuses Institute (INDEC).
Brazil’s market readout showed a decline of expectation for the 2007 IPCA inflation. This week’s median is 3.91%, from 3.94% last week and 4.09% a month ago.
Russia’s inflation continues to fall at 0.7-0.8% this month compared to 1.5% in February 2006, with an end of year target of 8%. The Economy Minster Gref predicted January’s GDP grew a 7.2%.
China has established a special task force to stem illegal securities activity. Led by officials from the Regulatory Commission and Central Bank, the group will advocate measures to publicize the issue and to coordinate controls regionally and nationally. Analysts expect administrative measures as well as raising reserve requirement ratios will be suggested.