Argentina: January inflation hits 2.9% and 12-month rate reaches 32.4%, INDEC says
The data release comes amid controversy over the government’s decision to delay a planned overhaul of the CPI methodology
Argentina’s inflation came in at 2.9% in January, taking the 12-month rate to 32.4%, according to the national statistics agency INDEC. The reading marked an acceleration of 0.1 percentage points from December.
By division, Food and non-alcoholic beverages posted the largest monthly increase at 4.7%, followed by Restaurants and hotels (4.1%). By price category, seasonal items rose 5.7%, core CPI increased 2.6%, and regulated prices climbed 2.4%.
The data release comes amid controversy over the government’s decision to delay a planned overhaul of the CPI methodology, including an update to the consumption basket. The issue intensified after the resignation of then-INDEC chief Marco Lavagna, amid disagreements over the timing of the change, Reuters reported.
Economy Minister Luis Caputo defended the decision to postpone the switch: “The change had to be made once the disinflation process was finished,” he said, describing differing views over the appropriate timing.
Separately, Argentina’s central bank said analysts surveyed in the Market Expectations Survey (REM) were projecting monthly inflation around 2.1% for February and 2.1% for March, pointing to a gradual downward path thereafter.
