Prices in Argentina probably rose at a faster pace in September after slowing over the previous five months, economists expect.
JPMorgan Chase & Co economist Diego Pereira projects inflation in Argentina accelerated to 2.9 percent last month, according to a research note published on Tuesday. That would be up from August's figure of 2.5 percent, the lowest rate of the year.
Argentine consultancy EcoGo, led by Marina Dal Poggetto, forecasts a slightly faster rise to three percent, driven by regulated prices in education, prepaid medical plans and cigarettes.
María Castiglioni, director of consultancy C&T Asesores, also estimates that consumer costs gained momentum in the Greater Buenos Aires area due to price increases in fruit and vegetables, as well as a rise in domestic workers' wages that added to housing costs.
Argentina's national statistics agency INDEC is scheduled to release September inflation data on October 14.
Beyond seasonal factors, Castiglioni also foresees an increase in monetary issuance by the Central bank, aimed at covering the government's election expenses ahead of the November 14 legislative elections, adding further pressure on prices.
"There are certain seasonal problems, but inflation also accelerated in September, especially in food and beverages, when the government decided to increase spending and print money to finance it," Castiglioni said in a telephone interview. The impact of monetary financing "will definitely be felt more in the coming month.s.
by Patrick Gillespie, Bloomberg