A Reuters poll indicates that Argentina’s inflation rate may rise to 2.4% in February, up from 2.2% in January. Despite government efforts to curb inflation, the country still struggles with high rates, projecting a continuation of this trend into March due to seasonal pressures.
Recent analysis suggests that Argentina’s inflation rate is expected to rise modestly in February compared to January. According to a Reuters poll involving 24 analysts, the consumer price index (CPI) is predicted to increase by 2.4% in February, up from January’s 2.2%.
Argentina has faced severe inflation problems, with triple-digit rates for several years, currently holding the title of the highest annual inflation rate globally. Although annual inflation was close to 300% last year, it decreased to 118% by the end of 2024, while monthly inflation has stabilized between 2% and 3% since October 2024.
Consulting firm Eco Go noted that the government’s efforts to maintain inflation below 2% have not been fully effective and indicated that inflation may have accelerated in February. Strategies employed included reducing the crawling peg to 1% and adjusting tariffs, but these measures have seen limited success.
The Central Bank of Argentina (BCRA) conducted a Market Expectations Survey forecasting a 2.3% inflation rate for February, with projections of 2% for March. The foundation Libertad y Progreso (LyP) observed that CPI increments early in February fell below those of January, suggesting a potential slowdown. However, price increases were noted to exceed expectations later in the month, driven primarily by rising costs in food and non-alcoholic beverages.
Looking ahead, analysts predict a mild acceleration in inflation for March. Clara Alesina, an economist with LyP, remarked that even with a downward trend, prices may elevate due to seasonal pressures coinciding with the school year’s commencement and the revival of critical economic sectors.
In conclusion, Argentina’s inflation rate is anticipated to exhibit a slight uptick in February, following a pattern of high inflation rates. Efforts by the government to rein in inflation have so far yielded limited results. Analysts and market expectations indicate a possibility of rising inflation into March, reflecting ongoing economic challenges in the nation.
Original Source: money.usnews.com
