By Hernan Nessi
BUENOS AIRES (Reuters) – Monthly inflation in Argentina is likely to have remained below 3% in November, close to the lowest level of the year but slightly higher than the month before, underscoring the challenge for libertarian President Javier Milei to keep prices to keep in check.
A Reuters poll of analysts published on Tuesday showed an average expected rise of 2.8% in the month, after 2.7% in October. Estimates ranged from an increase of 2.4% to 3%.
Argentina has been battling to reduce the world’s highest inflation rate, which has peaked at almost 300% annually.
The expected slight increase comes after a steady decline in monthly inflation since a peak of around 25% last December, when Milei took office promising to cut government spending to bring down prices and close a large deficit.
“The (downward) trend of recent months has been reversed. This slight monthly acceleration is likely caused by the increase in rates for regulated services, transport, fuel and food,” said local consultancy Management & Fit.
Lautaro Moschet, an economist at the Fundación Libertad y Progreso, also expected inflation to be “slightly higher.”
“While this increase is not alarming, given the higher frequency of regulated prices, it is important to highlight an acceleration in food prices, especially driven by meat,” he said.
The improvement in the longer-term inflation outlook has allowed the central bank to cut interest rates recently.
A central bank poll shows that annual inflation will be around 119% at the end of 2024, well down from the peak earlier this year around 300%, and 211% in 2023.
National statistics agency INDEC will publish official inflation data for November on Wednesday.
(Reporting by Hernan Nessi; Editing by David Alire and Kevin Liffey)
