Argentina Analysts Forecast 2025 Inflation at 23.3%

Analysts project 2025 inflation in Argentina at 23.3%, a slight increase from earlier estimates, alongside a growth forecast of 4.8%. Recent trends show declining inflation rates, crucial for the Milei government’s economic reforms.

Analysts in Argentina have maintained their inflation forecasts for 2025, projecting a year-end inflation rate of 23.3%, as indicated in the central bank’s recent market expectations survey. This forecast represents a slight increase of 0.1 percentage points compared to last month’s predictions. Additionally, analysts revised their annual economic growth expectation upward by 0.2 percentage points to 4.8% for the same year.

The survey, conducted between February 26 and 28, included responses from 39 participants, comprising consultancies, research centers, and financial entities. The INDEC statistics agency is anticipated to release the February inflation figures on Friday, followed by the economic growth data for the last quarter of 2024 on March 19.

In January, the central bank reduced its benchmark interest rate to 29% from 32%, attributing the decision to a decline in inflation rates. Monthly inflation decreased to 2.2% in January, marking the lowest level since mid-2020. Despite annual inflation in Argentina reaching nearly 300% early last year, it has dropped to approximately 85% as of January, with significant increases reported in hospitality services and housing utility costs.

While analysts have suggested that the inflation rates for February are unlikely to differ significantly from those of January, they expect the downward trend in inflation to persist throughout the year. Addressing inflation remains a top priority for President Javier Milei’s government, which has implemented strict austerity measures while aiming to sustain positive economic momentum as it negotiates new loans with the International Monetary Fund.

In summary, Argentine analysts are forecasting an inflation rate of 23.3% for 2025, reflecting a slight increase from previous estimates. The anticipated annual economic growth has also been revised upwards. As monthly inflation decreases, the country faces the challenge of continuing this downward trend while the government focuses on economic reforms and securing financial support.

Original Source: money.usnews.com