Analysts predict Argentina’s inflation for 2025 at 23.3%, slightly up from last month. Economic growth forecasts also rose to 4.8%. The survey included insights from 39 financial experts and coincides with government efforts to manage inflation through austerity measures.
In a recent survey by Argentina’s central bank, analysts forecasted a year-end inflation rate of 23.3% for 2025, reflecting a slight increase of 0.1 percentage points from previous estimates. This survey, conducted from February 26 to 28, included 39 participants from various consultancies and financial institutions. Furthermore, there was a modest adjustment to the anticipated annual economic growth, now estimated at 4.8%, marking an increase of 0.2 percentage points.
The INDEC statistics agency is scheduled to release the February inflation data this Friday, followed by the economic growth figures for the last quarter of 2024 on March 19. Recently, the central bank reduced its benchmark interest rate to 29% from 32%, attributing the change to the observed decline in inflation, which dropped to 2.2% in January—the lowest level since mid-2020.
Although annual inflation in Argentina skyrocketed to nearly 300% last year, it has recently moderated to approximately 85%. Notably, January saw the most considerable increases in hospitality services, housing, and utility costs. Analysts project inflation to either stabilize or slightly exceed the January rate, while a consistent downward trend is anticipated for the remainder of the year.
Addressing inflation remains a top priority for President Javier Milei’s administration, which has implemented stringent austerity measures aimed at sustaining economic momentum as they negotiate for new terms with the International Monetary Fund.
The recent survey indicates that Argentine analysts maintain their inflation forecast at 23.3% for 2025 and adjusted economic growth expectations to 4.8%. With inflation trends showing significant improvement from previous years, the government’s focus remains on ensuring sustained economic stability through austerity measures while preparing for upcoming data releases. These developments highlight ongoing challenges and efforts to stabilize the Argentine economy in the current landscape.
Original Source: money.usnews.com
