Argentina inflation spikes to 3.8% on festive spending splurge
Reuters
Published Jan 13, 2022 06:17AM ET
Updated Jan 13, 2022 02:16PM ET
By Hernan Nessi
BUENOS AIRES (Reuters) - Argentina inflation rose back up to 3.8% in December, the government said on Thursday, above forecasts and to its highest level since last April, driven by consumers splurging on festive feasts and holidays in the last month of the year.
The result, higher than the median forecast from analysts polled by Reuters of 3.6%, also saw running 12-month inflation clocked at 50.9% in the month. The Consumer Price Index (CPI) had risen 2.5% in November.
"The acceleration of inflation versus November is explained by the collection of bonuses and vacations, people spending pesos faster to buy items for parties and holidays," said Natalia Motyl, economist at the Fundacion Libertad y Progreso.
Argentina's government has been battling to tamp down rampant inflation, which is running at an annual rate of over 50%, with caps on exports of some meat cuts and grains as well as price freezes on many consumer goods.
The country's central bank recently hiked the benchmark interest rate to 40%, its first raise in over a year.
"Despite the freezes of some 1,400 products, the initial impact that was seen in November was offset by price increases outside the agreement," said Isaias Marini, economist at consultancy Econviews, adding meat prices had made a big impact.
"It's now a challenging start for 2022 in terms of prices, with inflation in 2021 appearing to set a floor for things. With tariffs and exchange rate adjustments, we project that inflation in 2022 will end at 58%." (Graphic: Battling inflation in Argentina, https://graphics.reuters.com/ARGENTINA-INFLATION/qmyvmdzmjpr/chart.png)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.