BUENOS AIRES (Reuters) – Monthly inflation in Argentina is expected to fall to 3.5% in September, which would be the lowest monthly rate since late 2021, a Reuters poll of economists showed on Tuesday.
That figure would be a sign of progress for the government of libertarian President Javier Milei, which has focused on curbing runaway prices since taking office in December.
Projections for last month’s inflation ranged from 3.1% to 4.0%, the poll of 27 Argentine and international analysts showed, yielding both a median estimate and an average average of 3.5%.
Argentina’s National Statistics Office will publish this on Thursday.
The outlook for September is “very encouraging,” said Clara Alesina, an economist at the think tank Fundación Libertad y Progreso. “The slowdown in general and underlying inflation reflect how markets have responded positively to the decisions taken.”
Consulting firm EcoGO said in a report that several factors contributed to slowing rising prices in September, including a decline in economic activity and a rise in parallel exchange rates.
Despite the declining monthly rate of price increases, Argentinians are still feeling the weight of triple-digit annual inflation.
Inflation reached 236.7% in the 12 months to August, the highest level in the world.
Analysts polled in a central bank survey published last week expect inflation of 123.6% for the whole of 2024.
(Reporting by Hernan Nessi; Editing by Mark Porter)