Argentina’s inflation averaged 12% in August, September, Central Bank says

Argentina’s monthly inflation rate averaged 12 percent in August and September, according to the Central Bank’s monthly monetary policy report published Monday. 

The Central Bank report comes ahead of official government inflation data for September to be published Thursday. Consumer prices in August rose 12.4 percent, the highest monthly pace since Argentina was exiting hyperinflation in the early 1990s. In Monday’s report, officials insist that price increases have been cooling in recent weeks and expected a “marked reduction” in October. 

The monetary authority raised its monetary policy rate 21 percentage points in mid-August to 118 percent, seeking to mitigate 124 percent annual inflation fuelled by a sharp currency devaluation at the time. Despite tightening monetary policy, the pressure on the peso continues as the black market exchange rate weakened to a historic low of 945 pesos per dollar Monday and the gap between the official rate and informal rates reached a record 170 percent.