Argentina’s inflation rate is expected to rise to 2.4% in February, up from 2.2% in January, according to a Reuters poll. The country has been struggling with high inflation, which peaked at nearly 300% but reduced to 118% by 2024. Analysts anticipate a continued upward trend, particularly influenced by seasonal factors.
A recent Reuters poll indicates that Argentina’s inflation rate is expected to rise slightly in February, with analysts predicting a consumer price index (CPI) increase of 2.4%. This figure represents an uptick from January’s rate of 2.2%. Argentina has faced severe inflationary pressures, having recorded some of the highest annual inflation rates globally in recent years, with rates nearing 300% early last year but having decreased to 118% by the close of 2024.
In February 2023, monthly inflation peaked at approximately 25%, but it has stabilized within the 2% to 3% range since October 2024. According to Eco Go, a consulting firm, “The government’s goal of breaking the 2% barrier has not been fully realized,” further observing that recent measures to combat inflation have yielded limited success.
A Market Expectations Survey conducted by Argentina’s central bank forecasts a 2.3% inflation rate for February and a projected 2% for March. The foundation Libertad y Progreso (LyP) noted that early February CPI increases were below January’s rates, but expectations reversed during the month due to significant rises, especially in food and non-alcoholic beverages, particularly meat. This contradiction suggests mixed indicators for inflation trends.
Economist Clara Alesina from LyP warned against a slowdown in inflation for March, citing the seasonal pressures caused by the beginning of the school year and the recovery of critical economic sectors, which could exacerbate price increases at that time.
In summary, Argentina’s inflation rate is projected to experience a slight rise in February 2023, highlighting ongoing economic challenges. The anticipated CPI increase, though lower than past peaks, reflects persistent inflationary pressures. Various consulting firms and surveys indicate that government efforts to stabilize inflation have been insufficient, and seasonal factors are likely to maintain upward pressure on prices in the near future.
Original Source: money.usnews.com
