Argentina inflation to cool slightly on food price freezes, analysts say

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FILE PHOTO: A woman shops in a supermarket, in Buenos Aires

By Hernan Nessi

BUENOS AIRES (Reuters) – Argentina inflation is expected to have cooled slightly in November, a Reuters poll of analysts showed on Tuesday, though remains high with prices set to rise nearly 100% this year.

A Reuters poll of 13 analysts indicated that the consumer price index jumped 5.9% last month with food costs tamed slightly by price freezes. That was below a 6.3% increase in October and a peak of 7.4% in July.

“The deceleration was mainly explained by a lower increase in food prices,” said Lautaro Moschet, an economist at Libertad y Progreso, pointing to the impact of food price freezes.

Argentina’s government had cut deals with different sectors in recent months to control spiraling prices that have sparked street protests as people feel the painful impact on their purchasing power and savings.

“The effects of the price agreements will be more visible from December, although it is clear that they will be temporary as the inconsistencies of fiscal and monetary policy are not compatible with a sustained drop in inflation,” Moschet said.

The November projections made by analysts surveyed by Reuters ranged betweenhttps://www.reuters.com/graphics/ARGENTINA-INFLATION/qmyvmdzmjpr/chart.png 5.4% and 6.6%.

“In the final week of November there was an acceleration in inflation,” said Isaias Marini, an economist at consultancy Econviews, who projected inflation over 6%.

Argentina’s official INDEC statistics institute will release inflation data for November on Thursday. Graphic: Battling inflation in Argentina, https://www.reuters.com/graphics/ARGENTINA-INFLATION/qmyvmdzmjpr/chart.png

(Reporting by Hernán Nessi; Editing by Andrea Ricci)

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