Sunday, June 23, 2024

ECONOMY | 07-09-2022 16:20

Argentina's inflation rate to hit 100% by end of 2022, EcoGo says

Economic consultancy firm EcoGo forecasts that inflation will hit 99.6% by the end of the year.

Inflation in Argentina is expected to reach 99.6 percent by the end of the year and remain above 100 percent in the first half of next year, according to Buenos Aires-based consultancy firm EcoGo.

Argentines face the highest annual inflation in three decades as global energy prices, economic policies and a falling currency have accelerated price rises this year. Part of the recent pressure on prices stems from widespread concern about a possible currency devaluation, reviving fears of past episodes in a crisis-prone economy.

Economy Minister Sergio Massa is in Washington this week to assure US officials and multilateral institutions that he intends to implement Argentina's US$44.5-billion agreement with the International Monetary Fund, which is seen by investors as a key anchor to finally stabilise inflation.

Massa has already pledged to end money printing for public spending this year and reduce the country's fiscal deficit among other measures to cool prices.

EcoGo, run by economist Marina Dal Poggetto, forecasts a very high August monthly inflation rate of 6.9 percent, although that would be slightly lower than the 7.4 percent recorded in July, which came amid a currency slump.

Rising regulated prices for health, education and transport caused the high August projection, according to the EcoGo report, which examines high-frequency data.

The INDEC national statistics bureau is due to publish official inflation data for August on September 14.

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