Inflation in Argentina is projected to peak at over 130 percent next year from its current level of 83 percent, according to a new report by Buenos Aires-based consultancy firm EcoGo, which analyses high-frequency data.
Argentina already has one of the highest inflation rates in the world and EcoGo, led by Executive Director Marina Dal Poggetto, is forecasting more than double the 60 percent inflation the government projected in its 2023 budget.
Inflation consistently emerges as the main concern of voters ahead of the 2023 presidential elections.
Dal Poggetto expects annual inflation to reach triple digits in December and then peak at around 132 percent in June, driven by a range of factors, including the drought driving up food prices.
She also estimates Argentina's monthly inflation rate accelerated in October to 6.6 percent from 6.2 percent the previous month, driven by increases in the prices of health, leisure and clothing plans. Monthly price increases are not expected to fall below 6.5 percent until at least September 2023.
Argentina's official statistics agency, INDEC, will publish October inflation data on November 15.
by Patrick Gillespie, Bloomberg