Argentina: Inflation accelerates in November from October
Latest reading: Consumer prices were up 31.4% in annual terms in November, following a 31.3% increase in the prior month. The November reading was above market expectations and marked the first inflation uptick since early 2024.
Relative to the previous month’s figures, price pressures were higher for food and non-alcoholic beverages in November (+31.1% in annual terms vs +28.6% in October). In contrast, there were reduced price pressures for transportation (+29.7% vs +30.2% in October), restaurants and hotels (+44.2% vs +45.8% in October) and housing and utilities (+44.2% vs +45.6% in October).
Lastly, consumer prices rose 2.47% in November on a month-on-month basis, following a 2.34% increase in the prior month and also above market expectations.
Panelist insight: On the reading, Goldman Sachs’ Sergio Armella said:
“Inflation picked up in November, driven in part by higher regulated prices following the October midterm election (e.g., higher fuel prices and electricity tariffs). Food inflation was also high in November, with notable upward pressure from meat (+6.6% mom in Buenos Aires) and fruits (+8.7% mom also in Buenos Aires). We note, however, that core inflation was also high, and nine out of the twelve CPI categories posted readings above 2% mom. We expect inflation to ease in December but remain slightly above 2%, with year-end annual inflation just over 30%, the lowest level since 2017.”