Argentina: Inflation elevated in April according to newly released data
May 10, 2017
According to the National Statistics Institute (INDEC), consumer prices in the Greater Buenos Aires capital area increased 2.6% in April from the previous month, accelerating from March’s 2.4% and above market expectations of a 2.1% rise. Utility prices continued to rise strongly in April, and prices for both clothing and footwear and education also grew significantly.
INDEC released inflation figures for Greater Buenos Aires for the first time, as it collected twelve consecutive CPI readings and thus had the necessary base of comparison. Inflation in April came in at 27.5%, well above the Central Bank’s 12.0%-17.0% target for this year. April’s figure comes after the Central Bank of Argentina hiked the 7-day Repo Reference Rate by 150 basis points to 26.25% at its 11 April meeting, in an attempt to drive inflation down to the target.
The latest data compiled by the Statistical Institute of the City of Buenos Aires show that inflation slowed from 35.0% in March to 29.4% in April, the lowest reading since December 2015. The different inflation data released by the Statistical Institute of the City of Buenos Aires and by INDEC are not comparable, as the two index structures are not homogeneous. This is due to different baskets of goods, samples and data collection methodologies.