Argentina: Month-on-month inflation down for fourth month running
Inflation came in at 289.4% in April, which was up from March’s 287.9%. April’s result marked the highest inflation rate since our current records began.
Annual average inflation rose to 199.7% in April (March: 183.2%).
Lastly, consumer prices increased 8.83% from the previous month in April, moderating from March’s 11.01% rise. The month-on-month decline was the fourth in a row and surprised markets on the downside. April’s result marked the weakest reading since October 2023.
Analysts at Credicorp Capital commented:
“We have revised downward our inflation estimate for December 2024 to 170.7% from 195.7%. This is considering that: i) it is likely that the inflation for May 2024 will be lower due to the postponement of adjustments in certain public services fees and health insurance, which are expected to be carried out later in the year; ii) the multiple early cuts by the BCRA in Apr 2024 seem to incorporate the expectation of a further decline in inflation in the coming months; and iii) there has been a new reduction in inflation expectations.”