A Reuters poll indicates Argentina’s inflation rate may rise to 2.4% in February, an increase from January’s 2.2%. This comes amidst ongoing inflationary challenges, and despite a decline from last year’s 300% annual rate, the government struggles with its inflation control measures.
Argentina is facing an anticipated rise in its monthly inflation rate for February, as indicated by a Reuters poll of analysts. The consumer price index (CPI) is expected to increase by 2.4%, slightly above January’s figure of 2.2%. This comes as Argentina battles ongoing inflation issues, having previously reported one of the highest annual inflation rates in the world.
Recent trends have shown Argentina’s annual inflation rate, which peaked at nearly 300% last year, has decreased to 118% by the end of 2024. Monthly inflation rates, previously reaching 25% in December 2023, have stabilized between 2% and 3% since October 2024. Despite these improvements, the government’s goal of keeping inflation below 2% has remained elusive, with some analysts predicting an acceleration in February’s figures.
Consulting firm Eco Go expressed concerns, noting that actions taken to curb inflation, such as adjusting the crawling peg and changing tariffs, have yielded limited results. The Market Expectations Survey (REM) from Argentina’s central bank suggests a 2.3% inflation rate for February and forecasts 2% for March.
The foundation Libertad y Progreso (LyP) observed that during early February, inflation rates were initially subdued; however, increases surged in the latter half of the month. This surge was primarily attributed to rising costs in food, particularly meat.
Looking ahead, analysts anticipate a slight uptick in inflation for March, influenced by seasonal pressures related to the beginning of the school year and the recovery of key economic sectors. Economist Clara Alesina from LyP highlighted that despite a downward trend in CPI, no significant slowdown is expected in the near term.
Argentina’s inflation continues to pose a challenge, with expected increases in February leading to projections of 2.4%. Despite recent declines in annual rates, monthly inflation has stabilized within a concerning range, hinting at persistent economic volatility. Analysts predict slight acceleration moving forward, suggesting that government measures to control inflation may not be yielding the intended outcomes, especially within critical sectors such as food. Overall, careful monitoring of price movements is essential in the coming months.
Original Source: money.usnews.com
