Analysts forecast 2023 inflation in Argentina at 23.3%, up 0.1% from last month. They also raised the 2025 economic growth estimate to 4.8%. Recent data show inflation slowing, but reducing it remains a priority for President Javier Milei amid ongoing IMF negotiations.
According to a recent central bank market expectations survey, Argentine analysts predict year-end inflation for 2023 at 23.3%, slightly up from last month’s forecast. Additionally, they have increased their anticipated annual economic growth for 2025 to 4.8%, up by 0.2 percentage points. This survey was conducted from February 26 to 28 and included 39 respondents from various financial sectors.
The Argentine statistics agency INDEC is scheduled to release February’s inflation figures this Friday and the economic growth data for the last quarter of 2024 on March 19. In late January, the central bank reduced its benchmark interest rate from 32% to 29%, reflecting a decline in inflationary pressures, with January’s monthly inflation recorded at 2.2%, the lowest since mid-2020.
After approaching nearly 300% in early 2022, annual inflation in Argentina had decreased to about 85% by January 2023, influenced heavily by rising costs in hospitality, housing, and utilities. Analysts believe that last month’s inflation is expected to align closely with January’s figures, although they anticipate a downward trend for the remainder of the year.
Reducing inflation remains a central focus for President Javier Milei’s administration, which has implemented stringent austerity policies and aims to sustain progress as it negotiates a new loan with the International Monetary Fund.
The latest predictions by Argentine analysts indicate a marginal increase in inflation forecasts for 2023 to 23.3%, along with a revised economic growth projection for 2025 at 4.8%. Following a significant decrease in monthly inflation rates, the government prioritizes continued inflation reduction through austere economic measures while negotiating with international financial institutions. Key economic data releases are forthcoming that may further clarify these trends.
Original Source: www.marketscreener.com
