Argentina: Inflation drops to lowest level since January in June
Inflation eased to 271.5% in June, following May’s 276.4%, amid lower price pressures for food and transport. June’s figure marked the lowest inflation rate since January, and was below market expectations.
The trend pointed up, with annual average inflation coming in at 225.5% in June (May: 213.4%).
Lastly, consumer prices increased 4.58% over the previous month in June, accelerating from May’s 4.18% rise but well below market forecasts of 5.2%. Sustained fiscal tightening, weak domestic demand and controlled currency depreciation in the official market have all helped rein in price pressures so far this year.
On the data and outlook, Itaú Unibanco analysts said:
“The stabilization program continues to deliver better-than-expected results on the nominal adjustment of the economy. In this context, consistent downside surprises to inflation, a stronger ARS, and weaker activity led us to lower our inflation forecast to 130% for YE24 (from 140%).”