Inflation growth in Argentina out of control-Poll
2023.02.13 15:04
Inflation growth in Argentina out of control-Poll
By Tiffany Smith
Budrigannews.com – According to a poll of analysts conducted by Reuters, Argentina’s goal of bringing monthly inflation down to less than 4% by April appears to be a difficult task. The poll estimated a 6% increase in the first month of the year, with prices rising nearly 100% annually.
The center-left Peronist government, which is fighting for political survival ahead of general elections in October, would face a new challenge if that rise, if confirmed, marked an acceleration of prices after a 5.1% increase in December.
Argentina has one of the highest rates of inflation in the world, which reduces people’s ability to spend and save. Wage increases frequently follow inflation, which has hit President Alberto Fernandez hard in polls of public opinion.
Lautaro Moschet, a local economist at the Libertad y Progreso Foundation, stated, “Inflation is once again escaping from the parameters that the government was setting and demonstrates the limited ability of (government) price controls.”
“For the time being, there is no theoretical reason to believe that inflation will fall,” and “the situation may even get worse in an election year.”
Reuters polled 20 analysts, and their projections ranged from a minimum increase of 5.2 percent to a maximum increase of 6.5 percent in January, primarily driven by utility costs.
According to Isaas Marini, an economist at the consultancy Econviews, “the biggest rise came from the area of housing, electricity, gas, and other fuels.” He also mentioned that prices had significantly increased in the populous Buenos Aires metropolitan area.
In December, Argentina’s economy minister Sergio Massa stated that in April, he wanted monthly inflation to be below 4%. The first few months of the year will see values of about 5%, according to private analyst estimates.
After reaching 95% last year, the highest level since 1991, a poll conducted by the central bank suggests that inflation could reach 100% by 2023.
On Tuesday, official January inflation data are anticipated to be released by the country’s official statistics body, INDEC.
