Argentina inflation decelerated to 2.3% in January, the official statistics agency said on Thursday, well below analyst expectations for a 3.4% rise.
The rate of inflation was also slower than in December when consumer prices rose 3.7%.
The January data brought 12-month inflation to 52.9%.
Argentina consumer prices rose 53.8% in 2019, the biggest increase in 28 years. Taming inflation in Latin America’s no. 3 economy will be a major challenge for the new administration of President Alberto Fernandez.
The head of the stats office, Indec Marcos Lavagna was cautious in his comments, it's good news, inflation is slowing, but in no way can we say that inflation is under control
Argentine president Alberto Fernandez talked in similar terms, it's encouraging, but definitively insufficient.
Lavagna identified different factors in the final result. Some factors were expected, between August and December, health care was increasing 6% per month; fuel 3.5% and 4% also monthly, and they have all been frozen now, so it is only natural inflation was lower
Likewise public services rates have also been frozen until next July, and similarly with some seasonal issues such as garments. Every year there is a drop in January because the change of season
As to the issues with a strong surge in prices...some 5%, they include leisure, tourism and culture, also because of seasonal reasons. Food prices also climbed since the VAT freeze in some products came to an end.