Argentina: Inflation falls to lowest level since March 2021 in May
Latest reading: Inflation dropped to 43.5% in May, below April’s 47.3%. May’s result marked the lowest inflation rate since March 2021 and was below market expectations. The moderation was broad-based, with lower price pressures recorded for transportation, food and non-alcoholic beverages, restaurants and hotels, and housing and utilities.
Accordingly, the trend pointed down, with annual average inflation coming in at 111.4% in May (April: 128.9%).
Lastly, consumer prices increased 1.50% over the previous month in May, a smaller increase than the 2.78% increase seen in April. May’s result marked the weakest reading since April 2020 and was also below market expectations.
Panelist insight: BBVA analysts said:
“The successful easing of the FX restrictions without an exchange rate disruption deactivated the devaluation outlook, which contributed to anchor down the inflation expectations of price makers and made it possible to break the 2% m/m floor for the first time in more than four years.”