Argentina’s inflation is projected to rise to 2.4% in February from January’s 2.2%, amidst ongoing economic challenges. Analysts indicate that while initial CPI increases were low, later price surges, especially in food items, may lead to further inflation. Seasonal factors are expected to exert additional pressure on prices in March, according to various reports and surveys.
According to a Reuters poll conducted among analysts in Buenos Aires, Argentina’s inflation rate for February is anticipated to see a slight increase over January. The consumer price index (CPI) is projected to rise by 2.4% in February, an uptick from January’s 2.2%.
Argentina, known as a leading exporter of grains and an emerging energy producer, has faced severe inflation challenges, ranking as the country with the highest annual inflation rate globally. Though it peaked at nearly 300% early last year, the rate declined, concluding 2024 at 118%. Monthly inflation had surged to around 25% in December 2023 but has stabilized between 2% and 3% since October 2024.
In a report, the consulting firm Eco Go indicated that, “the government’s goal of breaking the 2% barrier has not been fully realized, and in February, inflation may have even accelerated.” They noted that government measures aimed at curbing inflation have yielded limited results.
In a Market Expectations Survey conducted by Argentina’s central bank (BCRA), specialists predict a 2.3% inflation rate for February with expectations of a 2% rate for March. The foundation Libertad y Progreso (LyP) highlighted that initial CPI increases during the first half of February were subdued, leading to expectations for lower inflation. However, significant price rises in Food and Non-Alcoholic Beverages towards the month’s end, particularly in meat, have been noted.
Analysts predict a slight increase in inflation for March. Clara Alesina, an economist at LyP, remarked, “Despite the downward trend (of the CPI), a slowdown is not expected in March due to seasonal pressures as the school year begins and key sectors reactivate.”
In conclusion, Argentina’s inflation continues to present challenges, with February expected to reflect a slight increase from January. The government’s efforts to control this rampant inflation have been met with limited success, and analysts predict further pressure on prices in the coming months due to seasonal factors. As Argentina navigates its economic landscape, monitoring these inflation trends remains critical.
Original Source: money.usnews.com
