The New York Times echoed a worry in various places about Argentina´s growing inflation. There is little doubt that inflation is higher than the government recognizes and that a combination of a weak nominal exchange rate and growing public deficits may have contributed to it. However, it is just surprising that the NYT implicitly mentions a risk of hyper-inflation and, moreover, places Brazil in a similar vote:
"Inflation has reared its head elsewhere in Latin America as well. Brazil, which was ravaged by hyperinflation of more than 2,000 percent as recently as 1994, has become increasingly concerned that inflation will exceed 5.5 percent this year."
Is a 5.5 percent really such a problem, particularly in times of soaring commodity prices and growing capital inflows?