Inflation in October hit 3.3%, reports INDEC

Inflation hit 3.3 percent in October, the INDEC national statistics bureau reported Thursday.

Prices have now increased by 42.2 percent in 2019 to date, with increases over the last 12 months now totalling 50.5 percent, according to official data.

The monthly figure was slightly lower than expectations, dropping from September's peak of 5.9 percent, with government officials beforehand anticipating a figure of around 3.7 percent.

Inflation in August came in at four percent, the same month the peso devalued by 20 percent against the dollar in the wake of the PASO primaries.

However, the deceleration witnessed last month is expected to be short-lived. Inflation is expected to come in higher in November, with greater movement on food and beverage prices, as well the government's unfreezing of fuel prices, which kicked in today with increases of around five percent. That last alteration will hit every part of the chain of production, pushing costs up, which in turn are expected to be passed down to the consumer.

The Central Bank's most recent monthly survey of private economists anticipates a rate of 4.1 percent for November and four percent in December.

Inflation is expected to close out the year at between 55.6 and 59.5 percent, according to the Central Bank poll.

In 2018, prices increased by 47.6 percent.

Breakdown

A look at INDEC's report for October reveals that the Cuyo central-western region saw the largest increases, with prices rising 3.7 percent on average, with the smallest rise, 2.9 percent, registered in the northwest provinces.

The largest overall increases were seen in home equipment and maintenance (8.1 percent) and alcoholic drinks and tobacco (6.2 percent). Communication, meanwhile, rose only 0.5 percent by way of contrast, with education rising 1.6 percent.

– TIMES/NA