Argentina's inflation seen rising slightly in February- Reuters poll

Reuters

Wed, Mar 12, 2025, 8:55 AM 2 min read

BUENOS AIRES (Reuters) - Argentina's monthly ostentation complaint apt roseate successful February, somewhat higher than the fig recorded successful January, a Reuters canvass of analysts showed up of information owed connected Friday.

The user terms scale (CPI) is expected to person risen 2.4% successful February, according to the median estimation from 24 analysts surveyed by Reuters. If confirmed, that would people an summation from January's 2.2%.

Argentina, a large grains exporter and emerging vigor producer, has been grappling with triple-digit ostentation successful caller years, earning the dubious favoritism of having the world's highest yearly ostentation rate.

That yearly complaint neared 300% aboriginal past twelvemonth but has since declined, ending 2024 astatine 118%. Monthly inflation, which peaked astir 25% successful December 2023, has been successful the 2%-3% scope since October 2024.

"The government's extremity of breaking the 2% obstruction has not been afloat realized, and successful February, ostentation whitethorn person adjacent accelerated," said consulting steadfast Eco Go successful a report.

"Efforts to dilatory ostentation included lowering the crawling peg to 1%, intervening successful the speech complaint gap, and the discretionary updating of tariffs – which remained considerably beneath ostentation – each aimed astatine moderating the indicator, but with constricted success," Eco Go added.

A Market Expectations Survey (REM) conducted by Argentina's cardinal slope (BCRA) among specialists forecast a 2.3% ostentation complaint for February, with a 2% complaint expected for March.

The instauration Libertad y Progreso (LyP) noted that during the archetypal fractional of February, CPI increases were beneath January's, starring to expectations of a slowdown successful inflation.

"However, successful the 2nd fractional of the month, increases exceeded expectations, mostly driven by higher prices successful Food and Non-Alcoholic Beverages, peculiarly meat," it said.

Analysts surveyed expect ostentation to spot a flimsy acceleration successful March.

"Despite the downward inclination (of the CPI), a slowdown is not expected successful March. The commencement of the schoolhouse twelvemonth and the reactivation of cardinal sectors could make immoderate seasonal unit connected prices," said Clara Alesina, economist astatine LyP.

(Reporting by Hernan Nessi and Walter Bianchi, Writing by Natalia Siniawski; Editing by Chizu Nomiyama)