A Reuters poll suggests Argentina’s inflation rose to 2.4% in February, up from 2.2% in January. Despite efforts to manage inflation, rates remain substantial. Analysts anticipate some acceleration in March, influenced by seasonal factors and rising food prices.
According to a Reuters poll, Argentina’s inflation rate is projected to have increased in February, exceeding January’s figures. Analysts estimate that the consumer price index (CPI) rose by 2.4% in February, a slight increase from January’s recorded rate of 2.2%. This data is anticipated to be confirmed when released on Friday.
Argentina faces significant inflation challenges, holding the highest annual inflation rate in the world, which reached nearly 300% early last year but decreased to 118% at the end of 2024. Monthly inflation, which peaked at 25% in December 2023, has remained in the 2% to 3% range since October 2024.
Eco Go, a consulting firm, indicated that the government’s aim to break the 2% inflation barrier remains unrealized, suggesting potential acceleration in February’s inflation. Measures intended to manage inflation, including a lower crawling peg and exchange rate interventions, have had limited effectiveness.
Moreover, Argentina’s central bank (BCRA) conducted a Market Expectations Survey (REM) predicting a 2.3% inflation rate for February and a 2% rate for March. Libertad y Progreso (LyP) highlighted that the initial half of February saw CPI increases slower than January, shifting expectations towards a possible slowdown.
However, the second half of February saw price increases driven by the costs of food and non-alcoholic beverages, particularly meat. Analysts expect inflation to accelerate slightly in March due to seasonal pressures from the beginning of the school year and growing activity in key sectors.
In summary, Argentina’s inflation continues to pose challenges, with analysts projecting a slight rise in February’s consumer price index. Despite some government measures and expectations of a slowdown during early February, increased prices in specific sectors have resulted in potential upward inflation pressure. Observations for March suggest that seasonal factors may further influence inflation dynamics.
Original Source: www.marketscreener.com
