Analysts in Argentina cut their inflation forecast for 2024 to nearly 123%, by Reuters

BUENOS AIRES (Reuters) – Argentina’s monthly inflation rate was 3.9 percent in August and is expected to close the year at an annualized rate of nearly 123 percent, according to analysts polled by the central bank in a survey published on Thursday.

The new forecast marks a reduction of 4.75 percentage points from last month’s survey.

According to the survey, prices will rise 3.5 percent in September, slowing after a rise that followed deep spending cuts as well as the devaluation of the peso currency adopted by libertarian President Javier Milei in an attempt to curb skyrocketing inflation.

Analysts also forecast a 3.8% year-on-year decline in the South American economy’s real gross domestic product (GDP) for 2024, slightly lower than their previous estimate.

“The level of activity is expected to start to recover in the third quarter of the year, with an increase of 0.9%,” according to the survey, while participants expected growth to average 3.5% in 2025 .

The survey interviewed 42 analysts between August 28-30.

(Reporting by Nicolas Misculin; Editing by Sonali Paul)