Argentina: Pass-through effects from August's selloff keep inflation elevated in September
October 16, 2019
Consumer prices surged 5.9% over the previous month in September, coming in well above August’s 4.0% and marking the second consecutive month of intensifying price pressures, according to the National Statistical Institute (INDEC).
September’s acceleration was due to pass-through effects from the sharp depreciation of the peso which followed Macri’s unexpectedly large defeat at 11 August’s primary elections. Looking at the subcomponents of the index, the jump came on the back of a broad-based acceleration among sub-components of the index. The categories of clothing and footwear, communication and health recorded especially marked accelerations in price increases.
Inflation ticked down, however, coming in at 53.5% in September (August: 54.5%). Meanwhile, annual average inflation edged up to 52.4% from 51.3% in August.