MercoPress. South Atlantic News Agency

Argentine inflation stands at 3.5% in September

Thursday's figures represented a slowdown from August's 4.2%, the Indec said

Argentina's National Institute of Statistics and Census (Indec) announced Thursday that September's Consumer Price Index (CPI)stood at 3.5% for a yoy total of 209%. So far in 2024, inflation reached 101.6%, with housing, utilities, and fuels accounting for the largest increases. Thursday's figures represented a slowdown from August's 4.2%. The Core CPI, which records inflation excluding seasonal and regulated prices, stood at 3.3%.

Housing, Water, Electricity, and Gas and Other Fuels went up 7.3%, followed by Clothing and Footwear, which posted a 6 % surge given seasonal changes. On the other hand, the lowest variations were recorded in Alcoholic Beverages and Tobacco (2.2%) and Recreation and culture (2.1%).

September's results were driven, among other factors, by a reduction from 17.5% to 7.5% in the so-called PAIS tax applied to transactions abroad in foreign currencies, which brought down some retail prices of imported products.

October's inflation is expected to be around 3.4%, according to the Market Expectations Outlook (Relevamiento de Expectativas del Mercado - REM) report published by Argentina's Central Bank (BCRA) with input from leading economists in the private sector.

The REM thus showed a downward correction from the previous month. Inflation for 2025 is now projected to stand at 38.3% and 40.9% for the next 12 months. “The inflationary trend is clearly downward, and it is natural that this is so,” Economy Minister Luis Toto Caputo said last weekend. Since “there is less inflation, there is more stability. This generates better economic expectations,” he added.

Mining activity grew 2.1% year-on-year in August, but decreased 1.6% compared to July, the Indec also mentioned. The agency also highlighted a significant setback in construction after August's negative results.

In the last 12 months, five items posted above par surges: Communications (294.7%), Housing, Water, Electricity, and Gas and Other Fuels (294.6%), Miscellaneous Goods and Services (263.9%), Transport (245.8%), and Healthcare (225%).