Inflation in Argentina
Argentina - Inflation
Inflation comes in at highest level in over three decades in June
Consumer prices rose 5.30% over the previous month in June, accelerating from May's 5.05% increase and marking the fourth consecutive month in which prices grew above 5.0% in month-on-month terms. The highest price increases were recorded for healthcare, housing and utilities and alcoholic beverages and tobacco.
Inflation jumped to 64.0% in June, above May’s 60.7%. June's result was the highest inflation rate since our current records began. Annual average inflation rose to 54.7% in June (May: 53.4%).
Commenting on the inflation outlook, Lucila Barbeito and Diego W. Pereira, analysts at JPMorgan, stated:
“Under the vein of recent developments, we now expect an acceleration of inflation during H2 2022, which prompts us to revise our base case scenario ahead. While acknowledging the high uncertainty clouding our inflation forecast, our new base case scenario now assumes monthly average inflation at 5.8% in H2 2022, from 5.3% in H1. Yet, admittedly the forecast risk is still skewed to the upside amid potential pressures on BCRA balance sheet if the government fails to comply with the fiscal consolidation effort unveiled by Batakis for H2 2022 (see our note). In all, we acknowledge that absent a quick rethinking of the macro framework, the risk of converging to triple-digit annual inflation is increasing. We mark December 2022 inflation forecast at 90% oya.”
FocusEconomics panelists expect inflation to be 73.5% at the end of 2022, which is up 5 percentage points from last month’s forecast. Inflation is projected to moderate to 61.8% at the end of 2023.
Argentina - Inflation Data
|Inflation Rate (CPI, annual variation in %)||26.7||41.2||27.7||-||-|
5 years of economic forecasts for more than 30 economic indicators.
Argentina Inflation Chart
Source: National Statistical Institute (INDEC) and FocusEconomics calculations.
|Bond Yield||6.69||0.15 %||Dec 17|
|Exchange Rate||59.88||0.45 %||Dec 30|
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August 11, 2022
Industrial output grew 6.9% in year-on-year terms in June, which was a deterioration from May's 12.1% increase.
August 10, 2022
Industrial production rose 6.9% year on year in June (May: +12.1% yoy).
August 5, 2022
On 28 July, the Central Bank of Argentina (BCRA) decided to hike the LELIQ rate to 60.00% from 52.00% in a bit to tame inflation.
August 4, 2022
The Universidad Torcuato di Tella (UTDT) consumer confidence index decreased to 34.7 in July from 39.1 in June.
July 21, 2022
The monthly indicator for economic activity (EMAE) grew 7.4% year-on-year in May (April: +5.4% yoy).