Argentina inflation, highest in decades, seen at 6.7% in Sept

Cohen & Steers

12/10/2022 16:08

By Walter Bianchi
       BUENOS AIRES, Oct 12 (Reuters) - Argentina's inflation
rate likely eased slightly in September to 6.7%, a Reuters poll
of analysts showed, but remained stubbornly high overall,
supporting forecasts that it could top 100% this year, the
highest annual level since the early 1990s.
    That monthly rate would be lower that a 7% price rise in
August and a July peak of 7.4%. The South American country has
been battling to bring down one of the world's highest inflation
rates.
    The projections were made by 16 analysts surveyed by
Reuters, with estimates ranging between 6.5% and 7%. A poll by
Argentina's central bank estimates 2022 inflation of 100.3%.
    "Inflation will remain very high and we expect it to rise
6.5% in September and then drop moderately to 6% per month in
the last quarter," said local settlement and clearing agent
Cohen SA, adding the end of the year would be tough with lower
exports and rising pressure on state spending.
    The country's high inflation rate has pushed the central
bank to repeatedly hike the interest rate to the current level
of 75%. The bank is debating a potential new interest rate hike,
a source close to the bank told Reuters on Tuesday.
    "We are seeing the largest accumulated inflation for the
first nine months of the year since 1991," consultancy Libertad
y Progreso Foundation said in a report.
    Argentina's official INDEC statistics institute will release
inflation data for September on Friday.
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Battling inflation in Argentina    https://tmsnrt.rs/36BZUr1
Battling inflation in Argentina (Interactive graphic)    https://tmsnrt.rs/3rg3GQn
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 (Reporting by Walter Bianchi; Writing by Valentine Hilaire;
Editing by David Gregorio)
 ((Valentine.Hilaire@thomsonreuters.com;))