Prices in Argentina rose 2.5% in August and 51.4% year on year

RIO DE JANEIRO, BRAZIL – In August, consumer prices in Argentina registered a rise of 2.5% compared to July and a year-on-year increase of 51.4%, the National Institute of Statistics and Censuses (Indec) reported on Tuesday.

The evolution of prices in August confirmed the deceleration trend that has been verified since April, after inflation registered a 4.8% increase in March, its highest level so far this year.

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The index recorded in August is the lowest since July 2020 (1.9%).

According to the official report released on Tuesday, goods had a positive variation of 2.5% last month compared to July, while services rose by 2.3%, figures that amount to 56.7% and 39.3%, respectively, in the year-on-year comparison.

Among the increases recorded in August, education (4.2%), health (4.2%), and recreation and culture (3.7%) stand out.

But it is the food and non-alcoholic beverages division, with an increase of 1.5% in August, had the greatest impact on the general index.

The segment showing the smallest increase in the eighth month of the year was housing, water, electricity, gas, and other fuels, with a rise of 1.1%, while communications recorded a drop of 0.6%.

By regions, the highest inflation rate, 3.4%, was recorded in Patagonia (south), followed by the Northeast, with an index of 2.7%.

Cumulative inflation in the first eight months of the year was 32.3%. Last year, consumer prices had accumulated a rise of 36.1 %, achieving a deceleration with respect to the 53.8 % verified in 2019.

While the Government initially projected a price increase of 29% for 2021 -a guideline already surpassed-, the latest private forecasts collected monthly by the Central Bank indicate that inflation will be 48.4% this year and 43.1% in 2022.

According to these forecasts, inflation would be 2.7% in September and 2.7% in October but accelerating again from November until January 2022.