(Reuters) – Argentine analysts held their forecasts for this year’s inflation nearly steady, according to the central bank’s market expectations survey published on Monday, predicting year-end inflation at 23.3%.
This was 0.1 percentage points higher than the previous average forecast in last month’s central bank survey. Analysts also nudged up their annual economic growth forecast by 0.2 percentage points to 4.8% for 2025.
The survey was taken from February 26 to 28 and polled 39 participants, including consultancies, research centers and financial entities.
Argentina’s INDEC statistics agency is set to publish its February inflation data on Friday and its economic growth data for the last quarter of 2024 on March 19.
The central bank had in late January trimmed its benchmark interest rate to 29% from 32%, citing inflation’s downward trajectory. Argentina’s monthly inflation slowed to 2.2% in January, its lowest level since mid-2020.
Annual inflation in South America’s No. 2 economy had neared 300% early last year but has since come down into double digits, landing near 85% in January, when hospitality services as well as housing and utility bills saw the steepest increases.
Argentine analysts had predicted in February that last month’s inflation would likely remain in line or slightly above the January figures, though a downward trend should continue for the rest of the year.
Bringing down inflation is a key priority for the government of libertarian President Javier Milei, which ushered in strict austerity measures and is looking to maintain the positive momentum as it seeks a new loan from the International Monetary Fund.
(Reporting by Kylie Madry and Sarah Morland; Editing by Brendan O’Boyle)
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