Argentina posts faster-than-expected inflation before vote

Argentina’s inflation gained more momentum than expected in October, as new price controls failed to slow the pace of increases before Sunday’s midterm election. 

Consumer prices rose 3.5 percent on the month, above economists expectations of a 3.4 percent increase. From a year ago, inflation reached 52.1 percent, according to government data published Thursday. 

Prices for clothing, healthcare and restaurants all surged above the headline figure. The data comes a day after government officials announced new price controls on medications, and right before the crucial midterm vote on November 14.   

President Alberto Fernández also temporarily froze prices on over 1,400 household items in mid-October as inflation accelerated more than expected amid an economic reopening from the pandemic. Government officials have said that the controls helped cool price increases toward the end of the month. 

Analysts surveyed by the Central Bank last month anticipate annual inflation ending this year at 50 percent and remaining near that level in 2022.