On Wednesday, the INDEC is expected to release the inflation data for January. According to experts, the inflation rate for the month ranged between 20% and 23%, a slight decrease from December’s 25.5%.
The government of Buenos Aires has already released its data, which showed an increase of 21.7% in January, the highest since the beginning of the statistical series in 2012, with an interannual variation of the index amounting to 238.5%.
Economist Rocío Bisang from EcoGo predicts that inflation for January will be around 21.2%, citing a slow pace due to a decrease in demand for cars, shopping malls, supermarkets, gasoline, and retail stores. Lorenzo Sigaut Gravina, director of Equilibra, also predicts a lower rate for January at around 22.5%.
Core inflation advanced at a monthly rate of 19.5%, while consulting firm Ferreres & Asociados estimates that the inflation rate for January will end close to 18% monthly with an interannual growth of around 244.5%. The first Market Expectations Survey (REM) from the Central Bank shows economists participating in the survey calculated a monthly inflation of around 21.9% for January with estimates of around 18% for February and approximately 247% for the year.
LCG estimates inflation at around 23.1% in January and expects it to decrease compared to December due to several factors such as falling purchasing power and wages running behind prices. Among consultants there is agreement that February’s inflation will be lower than January due to various reasons such as decreased demand and less drag left by previous increases