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Inflation in Argentina: January Data Shows Decrease, with a Range of 20% to 23% Expected

ByEditor

Feb 11, 2024
Lower sales in Argentina result in lower inflation in January compared to December

Inflation data for January will be released by the INDEC next Wednesday, 14th. According to consultants, the rate is expected to range between 20% and 23%. Despite this, the level of inflation in January remained below December (25.5%) with a slight decrease in the third week of the month.

The City of Buenos Aires provides the first indication of what happened in the first month of the year with an increase of 21.7%, which is the highest since the start of statistical records in 2012. The interannual variation of this index amounted to 238.5%.

Economist RocĂ­o Bisang from EcoGo estimates that inflation for January was at 21,2%. She believes that there were significant price increases in specific areas such as Health and Transportation, where gasoline and train and bus fares had a major impact on overall costs.

On the other hand, Lorenzo Sigaut Gravina, director of Equilibra consulting firm, forecasts that preliminary data for January was lower than December’s preliminary data. He predicts an inflation rate of 22,5% for January. The fall in purchasing power due to wages falling behind prices was a major factor that slowed down inflation’s pace during this month. As reflected by demand falling in various sectors such as cars, shopping malls, supermarkets, gasoline stations and retail stores.

Ferreres & Asociados conducted a study based on over fifteen thousand prices of GBA goods and services and found that inflation for January would end close to 18% monthly with an interannual growth rate of 244.5%. Meanwhile, core inflation advanced at a monthly rate of 19.5%, marking an increase of over 268% annually compared to last year’s core inflation rates.

Overall, these findings suggest that despite some fluctuations within specific sectors

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