Argentina’s inflation cools more than expected in May

Argentina‘s inflation slowed more than expected in May as the government reintroduced a temporary lockdown to combat the pandemic and seasonal prices provided some respite.

Consumer prices rose 3.3 percent from April, less than economists’ forecasts for a 3.8 percent increase. Annual inflation reached 48.8 percent, its fastest pace in over a year, according to government data published Wednesday. The annual rate has surged in recent months after finishing last year at 36 percent.

To battle a new wave of Covid-19 cases, President Alberto Fernández implemented a nine-day lockdown in May which helped to contain price increases, even though the restrictions have since been relaxed somewhat. His government has struggled to rein in inflation so far this year through measures including strict currency controls, ban on beef exports and regulated food prices, making a 29 percent target for 2021 practically unattainable.

A surge in global commodity prices, the government’s money printing to finance Covid-19 spending and uncertainty over Fernández’s economic plans have contributed to accelerate inflation in Argentina.