Argentina: Peso fall fans inflation in September
October 18, 2018
According to the National Statistical Institute (INDEC), national consumer prices rose 6.5% over the previous month in September, coming in well above August’s 3.9% month-on-month increase and marking the fastest increase in prices since April 2016. September’s acceleration reflected the pass-through of a weaker peso, which translated into a broad-based increase in all 12 components of the index. The strongest price increases were recorded for: transport, mainly due to higher public tariffs and fuel prices; clothing and footwear; and housing, water, electricity, gas and other fuels. Meanwhile, inflation increased from 34.4% in August to a staggering 40.5% in September, the highest print since December 2016.
Argentina Inflation Forecast
Panelists surveyed for this month’s LatinFocus report expect national inflation to fall 27.1% at the end of 2019, which is up 1.6 percentage points from last month’s forecast. Inflation is projected to ease to 18.8% at the end of 2020.