By Hernan Nessi
BUENOS AIRES (Reuters) – Argentina’s inflation rate is expected to have picked up pace slightly in October, analysts polled by Reuters said, with spiraling prices that are set to climb 100% this year hammering spending power and stoking anger on the streets.
A Reuters poll of 14 analysts indicated that the consumer price index rose 6.5% last month, up from 6.2% in September, mainly due to rising prices for food and services. That remains down though from a peak in July.
Stubbornly high inflation has seen protesters take to the streets as prices have outstripped wages. The government, under pressure to reduce a deep fiscal deficit, announced a four-month freeze on consumer goods prices earlier on Friday.
Rising prices in October were likely “driven by the impact of regulated (products), clothing and the acceleration of food prices, particularly in recent weeks,” said Isaias Marini, an economist at the consulting firm Econviews.
Despite price rises, the central bank is seen pausing for a second straight month one of the world’s most aggressive tightening cycles, keen not to hinder growth and on expectations inflation will start to cool in coming months.
Jeronimo Montalvo, economist at Empiria Consultores, said monthly inflation is “holding steady around 6%” and scheduled increases in public service rates would also pressure prices in October.
Econviews’ Marini said that while consumer prices typically cool in November, he projects annual inflation of 101.5% by the end of the year.
Analysts polled by Reuters gave projections for October that ranged between a minimum of 5.6% and maximum of 7%. The INDEC statistics agency is scheduled to publish official inflation data for October next Tuesday.
GRAPHIC: Battling inflation in Argentina – https://graphics.reuters.com/ARGENTINA-INFLATION/qmyvmdzmjpr/chart.png
(Reporting by Hernan Nessi; Writing by Anthony Esposito; Editing by Andrea Ricci)