Argentina’s monthly inflation rose slightly above expectations in August, representing a setback for President Javier Milei’s efforts to tame price increases while his austerity drive slashes generous public subsidies.
Consumer prices rose 4.2 percent in August from July, above the four percent median forecast of economists surveyed by Bloomberg. Annual inflation slowed to 236.7 percent, according to government data published Wednesday.
Utilities, education and transportation led all categories in price increases last month, while the largest category, food, remained below headline inflation.
Bus fares in Buenos Aires jumped nearly 40 percent last month as Milei rolled back generous transport subsidies. Water, gas, electricity and fuel prices all picked up marginally as the president also reined in long-existing government aid. Consumer price prints for September may get some relief on the Milei administration’s decision to trim the country’s main import tax from 17.5 percent to 7.5 percent.
Milei’s victory lap is expected to continue, with economists forecasting that annual inflation will drop sharply to 44.7 percent in the next 12 months, according to a monthly survey conducted by the nation’s Central Bank.
The Central Bank’s survey posted September 5 shows economists expect annual inflation to fall to 122.9 percent by the end of 2024.
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