In a recent announcement by the National Institute of Statistics and Census in Buenos Aires, Argentina, the country’s Consumer Price Index (CPI) experienced a 2.4% increase in November, marking a 166% year-on-year rise. This figure, although still high, was the lowest recorded since July 2020, when inflation stood at 1.9%. The response from President Javier Milei’s Libertarian Government was positive, with Presidential Spokesman Manuel Adorni expressing, Inflation in Argentina RIP.
Key Points:
- Housing, water, electricity, gas, and other fuels were significant contributors to inflation in various regions.
- Transport costs saw significant adjustments in Greater Buenos Aires.
- Clothing and footwear had significant price hikes in the northeast.
- Restaurants and hotels reported the highest increases in the northwest.
- Patagonia experienced the highest monthly increase at 3.3%, followed by Greater Buenos Aires at 2.6%.
President Milei announced a strategic plan to tackle inflation effectively. If the inflation rate remains around 2.5% for three consecutive months, he plans to lower the crawling peg rate to 1%. This move aims to minimize the cost of living and stabilize the exchange market. Despite October’s inflation rate of 2.7%, the lowest since November 2021, the yearly CPI for the first ten months of the year stood at a staggering 76.5%.
Looking ahead, private consultants projected November’s inflation to range between 2.4% and 3%. For December, estimates suggest a rate of 2.9%, leading to an annual inflation of 118.8%. However, the Autonomous City of Buenos Aires reported a 3.2% CPI for November, indicating a period of stagnation.
In terms of sector-wise increases, Education witnessed the highest rise at 5.1%, followed by Housing, water, electricity, gas, and other fuels at 4.5%. Other notable increases were seen in Alcoholic beverages and tobacco (4%), Restaurants and Hotels (3.6%), Transport (3.4%), Recreation and Culture (3%), and Healthcare (2.9%). Conversely, the lowest variations were recorded in Household equipment and maintenance (1.5%) and Food and non-alcoholic beverages (0.9%).
Over the past year, several categories experienced substantial price hikes well above the average, including Housing, water, electricity, gas, and other fuels (276.4%), Communications (215.2%), Miscellaneous goods and services (218.7%), Transport (206.2%), Healthcare (184.4%), and Education (180%).
In conclusion, the recent statistics on inflation in Argentina reflect a complex economic landscape that requires strategic interventions to stabilize prices and ensure sustainable growth. The government’s proactive approach to addressing inflation signals a commitment to economic reforms and stability for the country’s future prosperity.
