FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

ARGENTINA: Progress On Inflation Stalling

ARGENTINA
  • As well as the slightly larger-than-expected 4.2% m/m increase in headline inflation in August, core inflation also proved sticky, with prices there rising by 4.1% m/m and core ex-food up by 4.3% m/m.
  • Looking ahead, JP Morgan says that the reduction of the PAIS import tariff at the start of this month will reduce inflation by 0.6%-0.7% points. However, achieving monthly inflation rates below 3% amid the current capital controls remains a challenge. They see monthly inflation averaging 4.0%m/m ahead, with a modest rebound by year-end/early 2025, assuming a transition into a new policy framework and FX market unification. This would be consistent with 2024 year-end inflation at 127% y/y (vs. 236.7% y/y in Aug).
  • Goldman Sachs also notes the stalling of progress on inflation in recent months, with core inflation remaining sticky at 3.7%-4.1% m/m between May and August. Risks around the FX rate, which has moved towards an overvaluation, remain a concern, in their view, as inflation continues to track above the 2% monthly depreciation of the official rate. Tighter monetary policy and a more flexible FX rate regime will be needed to anchor the economy.
BulletEM Bullet
BulletEM Bullet

To read the full story

Close

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.