In September, Argentina's monthly inflation rate is expected to have decreased to 3.5%, marking a significant improvement and the lowest rate since the end of 2021. Economists, in a Reuters poll, projected a range from 3.1% to 4.0%, with a median estimate and mean average of 3.5%. This development is viewed as a positive step for President Javier Milei's government, which has been focusing on curbing soaring prices since assuming office late last year.
According to Clara Alesina, an economist at the Fundacion Libertad y Progreso, the outlook for September is "very encouraging," pointing to a slowdown in both general and underlying inflation as a reflection of positive market responses to policy decisions. The EcoGO consulting firm also attributed the reduction in inflation to various factors such as a decline in economic activity and an increase in parallel exchange rates.
However, despite the monthly easing in inflationary pressures, the impact of triple-digit annual inflation remains palpable for Argentine citizens. The 12-month inflation rate stood at a staggering 236.7% as of August, making it the highest globally. Looking ahead, analysts surveyed by the central bank anticipate full-year inflation for 2024 to reach 123.6%.
The data indicates a gradual stabilization in Argentina's inflationary environment, offering a glimmer of hope for the country's economic outlook. As the government continues to implement measures to tackle inflation, the focus remains on sustaining this progress towards long-term economic stability.