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Free AccessARGENTINA: Analysts' Year-End Inflation Forecasts Edge Higher
- The latest BCRA analyst survey showed a slight increase in year-end inflation forecasts to 123.6% y/y, from 122.9% last month. At the same time, 2025 inflation forecasts continued to decline, with the year-end estimate dropping to 35.0% y/y, from 38.4% previously. Meanwhile, real GDP is still seen falling by 3.8% this year, followed by a 3.5% rebound next year.
- September CPI data will be published later this week, with the market expecting the monthly rate of inflation to edge down to 3.6% m/m, from 4.2% in August. This is expected to bring the annual rate of inflation down to around 209% y/y, from 236.7%. JP Morgan says that the moderation in monthly inflation will come mainly on the back of the one-off impact of the PAIS tax reduction and the expected deceleration in regulated prices. They also expect core CPI to have decelerated to 3.7%m/m, after last month’s acceleration to 4.1%. Last month, President Milei said that the government would lift currency controls when the rate of inflation has fallen to zero.
- Ahead of the CPI data on Thursday, August IP and construction activity figures will also be published tomorrow.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.