Argentina's Inflation Rate Update

BUENOS AIRES (Reuters) – Argentina's monthly inflation rate is anticipated to have slowed to 3.5% in September, marking the lowest monthly rate since the end of 2021, according to a Reuters poll of economists conducted on Tuesday.

This decrease would signal progress for the government of libertarian President Javier Milei, who has been focused on curbing skyrocketing prices since taking office in December.

Projections for September's inflation ranged from 3.1% to 4.0%, with both the median estimate and mean average landing at 3.5% based on the responses of 27 Argentine and international analysts.

Argentina's national statistics agency is set to publish the final figures on Thursday.

Clara Alesina, an economist at the Fundacion Libertad y Progreso, labeled the September outlook as "very encouraging," noting that the slowdown in general and underlying inflation demonstrates how the markets are responding positively to recent government decisions.

Consulting firm EcoGO reported that several essential factors contributed to September's deceleration in rising prices, including a decrease in economic activity and an appreciation in parallel exchange rates.

Despite this drop in the monthly inflation rate, Argentines continue to grapple with the burden of three-digit annual inflation. As of August, inflation over the preceding 12 months reached 236.7%, the highest rate recorded globally.

Analysts surveyed in a central bank report last week projected full-year inflation for 2024 at 123.6%.