Argentina’s monthly inflation would be 7.5% in April

He Consumer Price Index (CPI) Argentina would have posted a sweltering 7.5% in April, keeping the South American country above 100% year-on-year, according to the median of a Reuters poll.

In the latest Survey of Market Expectations (REM) of the Argentine central bank, analysts estimated a median monthly inflation of 7.5% for the fourth month, after 7.7% in March, and a level of 126.4% year-on-year for 2023.

These monthly percentages are among the highest in just over two decades.

Reuters estimates among 20 local and foreign analysts also returned an average of 7.6% for April’s CPI.

We forecast a CPI of “7.5%, just below the March figure. On the one hand, inertia is already very high, which makes it difficult for it to drop significantly, and on the other hand, we will see some of the impact of the rise in dollars in April Another part of this effect will be captured by the May measurement,” said Alejandro Giacoia, economist at the consulting firm Econviews.

At the end of April and the beginning of May, the South American nation suffered strong downward pressure in the alternative markets of its battered currency, the peso, which in the opinion of economists affected the CPI.

The projections of the surveyed analysts oscillated between a minimum advance of 7% and a maximum of 8.3 percent.

“The inflation floor is getting higher given that the lack of an economic course generates a lot of uncertainty and distrust in our currency,” said Lautaro Moschet, economist at the Libertad y Progreso Foundation.

“Not only is the monetary base growing at a rate of more than 40% in year-on-year terms, but also the demand for pesos accelerated and this was reflected in the exchange rate run in recent weeks. By definition, this means higher inflation and what becomes a dramatic situation for people, as purchasing power is collapsing at a great speed,” he added.

The National Institute of Statistics and Censuses (INDEC), according to its publication calendar, will release the official inflation data for April this Friday afternoon.