September Inflation in Argentina Hits 3-Year Low as Annual Rate Declines
Argentina’s inflation rate for September 2024 reached 3.5%, marking a continued downward trend since President Javier Milei took office in December 2023.
The National Institute of Statistics and Census (INDEC) released this data, which aligns with market expectations. The annual inflation rate has decreased to 209%, showing significant improvement from previous months.
The September figure represents the latest in a series of monthly declines since Milei’s administration began implementing strict economic reforms.
This 3.5% rate stands as the lowest monthly inflation since November 2021. The core inflation index, excluding volatile items, registered at 3.3% for the month.
Roberto Geretto, an economist at Banco CMF, views this data positively. He believes it indicates a potential break from the persistently higher inflation trends seen earlier.
However, Geretto remains cautious about future projections, acknowledging the complex economic landscape. The cumulative inflation rate for 2024 so far stands at 101.6%.
While still high, this figure reflects the ongoing efforts to curb inflation. Milei’s administration has implemented various measures, including reducing the country’s primary tax and maintaining capital controls.
Inflation Trends in Argentina
Looking ahead, the Central Bank of Argentina forecasts further decreases in monthly inflation rates. They project 3.4% for October, 3.3% for November, and a slight increase to 3.6% for December.
These projections suggest continued efforts to maintain the downward inflation trend. Sector-wise, housing, water, electricity, gas, and other fuels saw the highest price increases at 7.3%.
Clothing and footwear followed with a 6% rise. These figures underscore the broad impact of inflation across various aspects of daily life. The current exchange rate places 1 Argentine peso at approximately 0.0029 US dollars.
This conversion rate emphasizes the ongoing economic challenges but also reflects the stabilization efforts under Milei’s leadership. While the steady decrease in monthly inflation offers hope, the road to full economic recovery remains long.
The government continues to face the challenge of balancing effective fiscal and monetary policies with the immediate needs of the population.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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