Argentina’s battle with inflation continues as the Consumer Price Index (CPI) for September climbed to 3.5%. This marks a slight decrease from August’s 4.2%, according to the latest data released by the National Institute of Statistics and Census (Indec). Inflation for the year surged to a total of 209%, with housing, utilities, and fuels witnessing the most significant spikes.
Key points to note from the recent statistics include:
- Housing, Water, Electricity, and Gas, along with Other Fuels, saw a substantial increase of 7.3%.
- Clothing and Footwear experienced a seasonal surge of 6%.
- Sectors like Alcoholic Beverages and Tobacco, as well as Recreation and Culture, recorded the lowest variations at 2.2% and 2.1% respectively.
One major factor influencing September’s figures was the reduction of the PAIS tax on foreign currency transactions from 17.5% to 7.5%. This led to a decline in retail prices of imported goods, contributing to a slight decrease in the inflation rate.
Looking ahead, experts predict that October’s inflation rate will hover around 3.4%, based on the recent Market Expectations Outlook report. This report, compiled by Argentina’s Central Bank with input from leading economists, also projects a downward trend in inflation for 2025 and the next 12 months.
Economy Minister Luis Toto Caputo expressed optimism about the decreasing inflation trend, stating that lower inflation rates lead to greater economic stability and improved expectations.
In other sectors, mining activity experienced a 2.1% growth year-on-year in August but witnessed a 1.6% decline compared to July. Construction also faced setbacks following negative results in August.
Over the last 12 months, several categories saw significant price hikes, including Communications (294.7%), Housing, Utilities, and Fuels (294.6%), Miscellaneous Goods and Services (263.9%), Transport (245.8%), and Healthcare (225%).
As Argentina navigates its economic challenges, addressing inflation remains a critical task for policymakers and stakeholders. By monitoring these trends and implementing strategic measures, the country can work towards achieving long-term stability and growth.
