Argentina’s analysts predict inflation at 23.3% for 2025 and upwardly revise economic growth to 4.8%. Recent data shows a decline in inflation rates, which the government aims to keep controlled amid austerity measures.
Analysts in Argentina are maintaining their inflation forecasts for 2025 at 23.3%, reflecting a marginal increase of 0.1 percentage points from last month’s predictions, according to a central bank market expectations survey. Additionally, the expected annual economic growth for the same year has been adjusted upwards by 0.2 percentage points to 4.8%.
The survey, conducted from February 26 to 28, surveyed 39 respondents, including consultants and financial entities. Argentina’s INDEC statistics agency is anticipated to release its February inflation data shortly, with economic growth figures for the last quarter of 2024 expected on March 19.
In late January, Argentina’s central bank reduced the benchmark interest rate from 32% to 29%, attributing this decision to the easing inflation trend. January’s monthly inflation rate was recorded at 2.2%, the lowest since mid-2020, and annual inflation dropped from a peak near 300% early last year to 85%.
Predictions made by analysts suggested that February’s inflation would likely stay consistent or marginally exceed January’s numbers, expecting the downward trend to persist throughout the year. Combating inflation is a primary objective for the administration of President Javier Milei, whose government has implemented stringent austerity measures as it aims to secure a new loan from the International Monetary Fund.
Argentina’s inflation forecast for 2025 stands at 23.3%, with economic growth also slightly revised upwards. The ongoing focus on inflation management, alongside new economic strategies, reflects the country’s broader financial stabilization efforts under the current administration. The upcoming inflation and growth data releases are crucial in assessing the effectiveness of these policies.
Original Source: money.usnews.com
