Argentina's Inflation Rate Drops to 3.9% in August, Analysts Predict Annual Rate of 123% by Year-End
In a recent survey conducted by the central bank, analysts forecast Argentina's monthly inflation rate to be at 3.9% in August, with expectations of reaching an annualized rate of nearly 123% by the end of the year. This new prediction shows a decrease of 4.75 percentage points compared to the previous month's survey.
The survey also indicates that prices are anticipated to increase by 3.5% in September, following a period of sharp rises due to spending cuts and the devaluation of the peso currency by President Javier Milei. Additionally, analysts projected a 3.8% year-on-year decline in the country's real GDP for 2024, slightly lower than their previous estimate.
According to participants, the economy is expected to begin recovering in the third quarter of the year, with a growth rate of 0.9%. The survey, which polled 42 analysts from August 28-30, also estimates an average growth rate of 3.5% for 2025.
In summary, Argentina's inflation rate is on a downward trend, while the economy is showing signs of recovery. It is essential for investors to monitor these developments closely to make informed decisions about their financial strategies and investments.