Argentina: Inflation continues to show resilience in March
April 12, 2017
In March, consumer prices in the greater Buenos Aires capital area increased 2.4% from the previous month, a slight deceleration from February’s 2.5% but still above market expectations of a steeper drop to 2.2%. Inflationary pressures linked to hikes in utility prices continued to feed through in March, driving the change in consumer prices. March’s figure also swayed officials into hiking the main policy rate as they attempt to drive inflation down to the 12-17% target for this year. According to recent data published by the National Statistics Institute (INDEC), the figure reflected higher prices for food and beverages, clothing and apparel and housing prices.
INDEC did not release inflation figures and announced that it would start publishing year-on-year variations in consumer prices when a base of comparison is available. The latest data compiled by the Statistical Institute of the City of Buenos Aires show that in March, inflation slowed from 35.6% in February to 35.0%, which marked the lowest reading since March 2016.
Author: David Ampudia, Economist