Argentine analysts forecast a 2025 inflation rate of 23.3% and have raised the economic growth projection to 4.8%. The central bank’s recent interest rate cut reflects declining inflation trends. The government is prioritizing inflation control amid significant austerity measures while seeking further loans from the IMF.
Argentine analysts have adjusted their inflation forecasts for 2025, anticipating a year-end inflation rate of 23.3%, an increase of 0.1 percentage points from previous estimates. They also revised their annual economic growth projection upward by 0.2 percentage points to 4.8%. This information derives from a survey conducted by the central bank, which involved 39 participants, including consultancies and financial entities, between February 26 and 28.
The INDEC statistics agency is expected to release its inflation report for February on an upcoming Friday and will deliver economic growth figures for the last quarter of 2024 on March 19. In late January, the central bank reduced its benchmark interest rate from 32% to 29%, noting a persistent decline in inflation rates. January’s monthly inflation registered at 2.2%, the lowest since mid-2020.
Despite Argentina facing annual inflation rates that approached 300% in the previous year, recent data indicates a reduction to approximately 85% in January, influenced by substantial increases in hospitality services, housing, and utilities. Analysts forecast inflation will stabilize or slightly exceed January’s rates, although a positive downward trend is expected throughout the year.
Reducing inflation remains a top priority for the administration of libertarian President Javier Milei, which has enacted stringent austerity measures while striving to preserve economic stability as it seeks additional funding from the International Monetary Fund.
In summary, analysts project Argentina’s inflation to reach 23.3% by the end of 2025, with an upward revision of the economic growth forecast to 4.8%. The central bank has previously reduced interest rates, reflecting a decreasing trend in monthly inflation. As the government of President Javier Milei endeavours to control inflation through austerity measures, maintaining this trajectory will be critical for economic recovery and international financial support.
Original Source: money.usnews.com
