On Wednesday, the INDEC is expected to release the inflation data for January. Based on expert predictions, the inflation rate is expected to range between 20% and 23%, which is lower than December’s 25.5%. The third week of the month saw a small deceleration in inflation.
The City of Buenos Aires has already released its data, showing an increase of 21.7% in January, which was the highest since the beginning of the statistical series in 2012. The index had an interannual variation of 238.5%. Inflation in Buenos Aires is typically aligned with the CPI at the national level.
Economist Rocío Bisang of EcoGo predicts that inflation for January will be around 21.2%. She notes that December’s increases had a drag on January’s inflation, particularly in areas such as health and transportation. Lorenzo Sigaut Gravina, director of Equilibra, also predicts a lower inflation rate for January compared to December, with an estimated rate of 22.5%.
The fall in purchasing power due to wages running behind prices played a role in slowing down inflation in January. Demand fell in various sectors such as cars, shopping malls, supermarkets, gasoline stations, and retail stores. Ferreres & Asociados predicts that the inflation rate for January will end close to 18% monthly with an interannual growth of 244.5%. Core inflation advanced at a monthly rate of 19.5%.
According to the first Market Expectations Survey (REM) from the Central Bank, economists participating in the survey calculated a monthly inflation of around 21.9% for January and estimates for February and yearly expectations were given as well with February’s estimate being around 18% and yearly estimate being around