Argentina: Inflation ticks down as peso stabilizes

According to the National Statistical Institute (INDEC), national consumer prices rose 2.6% over the previous month in December, coming in below November’s 3.2% month-on-month increase.

December’s reading represented the third consecutive month of decelerating month-on-month price increases. It reflected pass-through effects from a stabilizing peso, which again translated into a broad-based slowing in month-on-month price growth in the 12 components of the index in December. The strongest price increases were recorded for communication—due to mobile phone tariff increases—and healthcare.

Meanwhile, inflation moderated from November’s multi-year high of 48.5% to 47.6% in December.

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.