Argentine analysts revised down their inflation forecasts for this year, as per the central bank's market expectations survey released on Thursday. They also showed a slightly more optimistic outlook on economic growth in Argentina, the second largest economy in South America.
The updated projection now anticipates an annual inflation rate of 23.2%, a decrease of 2.7 percentage points compared to the previous average. Analysts also estimated a 2.3% month-on-month price increase for January.
Furthermore, the analysts adjusted their economic growth forecast by 0.1 percentage point, now expecting a growth rate of 4.6% by the end of 2025.
Conducted between January 29 and 31, the survey included 39 participants from consultancies, research centers, and financial institutions.
While annual inflation has decreased significantly from a peak of nearly 290% in April last year, it still hovered around 118% as of December. Monthly price hikes have moderated to single-digit percentages.
President Javier Milei, who assumed office in December 2023, implemented strict austerity measures that have led to a gradual slowdown in price increases. However, poverty rates exceeded 50% in the first half of last year.
Recently, the central bank reduced its key rate to 29% from 32%, citing the declining inflation trend.
Argentina's INDEC statistics agency is scheduled to release January's inflation data on February 13 and the economic growth figures for the final quarter of 2024 on March 19.