Argentina Analysts Reduce 2024 Inflation Forecast to Nearly 123% by Reuters

BUENOS AIRES (Reuters) – Argentina’s inflation rate for August reached 3.9%, with analysts predicting a near 123% annualized rate by the end of the year, as indicated by a central bank survey released on Thursday.

This new forecast reflects a decrease of 4.75 percentage points from the previous month’s estimate.

The poll suggests a 3.5% increase in prices for September, indicating a slowdown following significant spending cuts and the devaluation of the peso implemented by libertarian President Javier Milei, aimed at tackling soaring inflation.

Analysts also anticipate a 3.8% year-on-year decline in the country’s real gross domestic product (GDP) for 2024, slightly lower than previous forecasts.

"The activity level is expected to start recovering in the third quarter of the year, with a projected increase of 0.9%," the survey states, and participants foresee an average growth of 3.5% in 2025.

The survey included insights from 42 analysts conducted from August 28 to 30.

(Reported by Nicolas Misculin; Editing by Sonali Paul)