Argentina’s Inflation Likely to Rise Slightly in February According to Analysts
Argentina’s inflation rate for February is projected to rise to 2.4%, slightly above January’s 2.2%. The nation has dealt with severe inflation, hitting a rate of 118% in 2024. Analysts predict ongoing challenges, with food prices contributing to inflationary pressure in the coming months.
Argentina’s inflation rate for February is anticipated to increase slightly according to a recent Reuters poll of analysts. The consumer price index (CPI) is projected to rise by 2.4%, up from January’s recorded 2.2%. This information is forthcoming with the official data set to be released on Friday.
The country has been struggling with severe inflation, having one of the highest annual rates globally, historically nearing 300% before declining to 118% at the end of 2024. Monthly inflation rates peaked at around 25% in December 2023 and have fluctuated between 2% and 3% from October 2024 onward.
Consulting firm Eco Go reported, “The government’s goal of breaking the 2% barrier has not been fully realized, and in February, inflation may have even accelerated.” Measures taken to combat inflation included lowering the crawling peg rate to 1% and adjusting tariffs; however, these efforts have only achieved limited success.
The Market Expectations Survey (REM) by Argentina’s central bank (BCRA) forecasts an inflation rate of 2.3% for February, with a 2% prediction for March. The foundation Libertad y Progreso (LyP) observed that inflation in the first half of February was below January’s levels, suggesting a possible slowdown.
However, the latter part of the month saw inflationary increases, particularly driven by food and non-alcoholic beverage prices, mainly meat. Clara Alesina, an economist at LyP, indicated, “Despite the downward trend (of the CPI), a slowdown is not expected in March,” citing the start of the school year and active sectors as contributing factors to seasonal price pressures.
In summary, Argentina’s inflation rate is projected to see a slight rise in February, reflecting ongoing economic challenges. Despite initial signs of a potential slowdown, increases in essential food items have raised concerns. Analysts expect similar trends to persist into March, influenced by seasonal factors. The government continues to grapple with high inflation levels while implementing measures to stabilize prices.
Original Source: money.usnews.com
