Argentina: Inflation accelerates but effects of stabilizing peso emerge
December 14, 2018
According to the National Statistical Institute (INDEC), national consumer prices rose 3.2% over the previous month in November, coming in well below October’s 5.4% month-on-month increase. November’s reading reflected lagged pass-through effects from a stronger peso in October, which translated into an almost broad-based deceleration in month-on-month price growth in the 12 components of the index in November. Moreover, moderating effects on inflation are expected to persist in December as the peso remained broadly stable in the previous month. The strongest price increases were recorded for: alcoholic beverages and tobacco products, healthcare and housing equipment and maintenance. Meanwhile, inflation jumped from 45.9% in October to 48.5% in November, a multi-year high.
Argentina Inflation Forecast
Inflation is expected to be 28.0% at the end of 2019, which is up 0.9 percentage points from last month’s forecast. Inflation is projected to fall to 18.6% at the end of 2020.