Argentina: Peso sell-off pushes inflation up in August
September 12, 2019
Consumer prices rose 4.0% over the previous month in August, coming in well above July’s 2.2% increase and ending a four-month streak of moderating price growth, according to the National Statistical Institute (INDEC).
August’s acceleration was due to the sharp depreciation of the peso following Macri’s unexpectedly large defeat at 11 August’s primary elections. Looking at the subcomponents of the index, the jump was driven by faster price increases for alcoholic beverages and tobacco, housing maintenance and furnishing, and transport. On the other hand, utilities prices recorded the only deceleration in price pressures.
Inflation inched up, coming in at 54.5% in August (July: 54.4%). Meanwhile, annual average inflation edged up to 51.3% from 49.6% in July.