The bank, however, says that the inflationary surge of 1998 was a short-term problem that has since been contained.

But the Government has also indicated the infusion of new money will be staggered over several months so as to avoid an inflationary surge.

That has raised questions about an inflationary surge, especially in view of the Peronist Party's populist origins.

"It's difficult to see where a major inflationary surge might come from."

In the last big inflationary surge, during the 1970's, raw material prices skyrocketed amid talk of shortages.

All have sharply raised gasoline prices, provoking an immediate inflationary surge and widespread protests.

It also ignited the current inflationary surge, Western bankers say.

But throughout the year, the feared inflationary surge did not occur.

And shortages sowed the seeds for a new inflationary surge once the price freeze was eased.

If the Treasury policy prevails, however, the nation could be subjected to an inflationary surge.