MercoPress. South Atlantic News Agency

Argentina's inflation reaches 3.9% in January

Tuesday's 50.7% was the lowest yearly inflation reported since June 2021

Despite requirements from the International Monetary Fund (IMF) that inflation needs to be under control, Argentina's National Institute of Statistics and Censuses (Indec) Tuesday reported January's figures had reached 3.9% for a 50.7% YoY.

It was the largest monthly increase since April 2021, when it stood at 4.1%.

The increase in the Consumer Price Index (CPI) was driven by a 4.9% increase in food and non-alcoholic beverages; in addition to health care, which rose 4.1%.

Year-on-year inflation in clothing as well as in hotels and restaurants went up 66.3% and 65.8% respectively.

Housing also went up sharply thanks to highly counterproductive legislation passed recently regarding the rental of real estate for residential purposes, which resulted in a sharp contraction on the supply side.

Argentine authorities also said the country's Gross Domestic Product (GDP) grew 10% and is expected to go up an additional 3% by the end of the current fiscal year.

Tuesday's data is in line with expectations. The sharp increase in food prices has direct consequences in the worsening of the standard of living of the population, it was reported.

Communications (telephone and internet) rose 7.5%.

Nevertheless, 50.7% is the lowest yearly inflation since June 2021, as the sharp increases from the last months of 2020 are being dropped from the spreadsheets.