The National Institute of Statistics and Censuses (Indec) of Argentina reported that in October the consumer price index (CPI) stood at 193% year-on-year, marking its sixth consecutive slowdown. During the tenth month of the year, consumer prices increased by 2.7% compared to September, showing a slowdown compared to the previous month, which recorded an increase of 3.5%.
The monthly index for October was the lowest since November 2021, when the monthly variation was 2.5%, and is significantly below the rates recorded in previous months, such as December (25.5%) and January (20.6%). The downward trend in prices in Argentina is attributed to measures such as the devaluation of the Argentine peso implemented by the government of Javier Milei in December 2023, along with ultraliberal policies that generated a strong fiscal and monetary adjustment, leading to a decline in consumption and demand.
The official report revealed that in October, prices of goods increased by 2.1% compared to September, while services rose by 4.3%. These figures represent an increase of 179.2% and 233.1% in the year-on-year comparison, respectively. Among the notable monthly increases in October are housing, water, electricity, and gas (5.4%) due to increases in rents and services, and in clothing and footwear (4.4%). Food and non-alcoholic beverages increased by 1.2% compared to September and 183.2% year-on-year.
So far this year, inflation in Argentina has accumulated an increase of 107%, while in 2023 consumer prices rose by 211.4%, placing the country with one of the highest rates globally last year. The most recent forecasts gathered by the Argentine Central Bank indicate that inflation will close the year at 120%, with estimated monthly rates of 2.9% in November and 3.2% in December.
