Business & Economy

Inflation projections in Argentina soar to 169.3% for the rest of 2023

Buenos Aires, Sept 13 (EFE). – Analysts surveyed by the Central Bank of Argentina for its monthly report on market expectations raised their inflation forecast for this year to 169.3%.

The forecast for the evolution of retail prices was revised up by 28.6 percentage points compared to the previous survey in July.

According to the results of the Market Expectations Survey for August, published on Wednesday, experts calculated that inflation will increase by 11.8% compared to July.

This forecast was exceeded by the measurement of the Consumer Price Index made by the National Institute of Statistics and Censuses (Indec), which reported also on Wednesday that the inflation rate for August was 12.4%.

According to the consultation carried out by the Central Bank between 29 and 31 August, private economists predict an inflation rate of 12% for September.

They also predict very high rates for the coming months: 9.1% in October, 9.4% in November, 13.2% in December and 14.3% in January 2024.

If these forecasts come true, 2023 will be the highest rate recorded in Argentina since the hyperinflation of 1989-1990, far exceeding the 94.8% recorded last year.

August’s surge in inflation is directly related to the abrupt 22% devaluation of the Argentine peso on August 14th, the day after Argentina’s primary elections for October’s presidential elections, in which far-right populist candidate Javier Milei is the front-runner.

The sudden devaluation of the official exchange rate immediately translated into a rising price of the dollar in the parallel quotations used to price all kinds of goods and services. EFE


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