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Argentina’s inflation eases in October, stays hot

  • Mercados: Agriculture, Metals
  • 12/11/26

Argentina's inflation rate eased to an annual 33.1pc in October, according to the statistics institute Indec.

The consumer price index (CPI) was down from the 33.4pc annualized through the previous month, but well above the government's initial target of 10pc for the year. It is also above the forecast of 30.4pc by analysts surveyed by the central bank in early November.

Inflation for the 12 months through October was impacted by a 51.1pc increase in the housing/utilities category, 39.4pc in education, 36.9pc in communication and 34.6pc in food/beverages. This final category accounts for nearly one-quarter weighting of the headline calculation.

On a monthly basis, the CPI increased 2.2pc in October, up from 1.9pc the previous month and the highest since April.

In addition to high inflation, President Javier Milei's government is also dealing with other tough numbers one year out from the next general election. He is expected to stand for another four-year term.

The economy contracted by 1.7pc in August from a year earlier, following 1.5pc contraction in July and 3.1pc annual growth in June. Unemployment in the second quarter was 7.9pc, up from 7.8pc in the first quarter, Indec reported.

The International Monetary Fund (IMF) in October lowered its growth forecast for Argentina to 1.4pc for this year, down from the original 2.1pc. It revised up its inflation forecast to 32.5pc, up from the original 30.4pc for the year.

Argentina is the IMF's largest creditor with a debt of $42bn, close to one-third IMF's total outstanding loans of $122.4bn in November.


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