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Annual Inflation Breaches 60%, BCRA Expected To Hike

ARGENTINA
  • Monthly inflation slowed slightly more than expected in May, with price gains reaching almost 61% in annual terms:
    • Argentina May National CPI +5.1% M/m
    • Argentina May National CPI +60.6% Y/y
  • The BCRA is planning to increase interest rates in its upcoming board of directors meeting on Thursday as inflation accelerates, according to a senior government official. (BBG)
    • The bank is very likely to decide in favour of the hike, the official with direct knowledge of the matter said, marking the sixth hike in borrowing costs this year as annual inflation has sped past 60%, with the reference rate currently at 49%.

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