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Unprecedented Inflation Rates in January: A Comprehensive Look at the Data and Expert Forecasts

ByEditor

Feb 11, 2024
Lower sales in Argentina result in lower inflation in January compared to December

On Wednesday, January 14th, the INDEC will release the inflation data for the month of January. According to experts, inflation rates are expected to range between 20% and 23%. Despite this, December’s level remained below expectations at 25.5%, with a slight deceleration in the third week of the month.

A first indicator of what happened in the Buenos Aires area during January was provided by the City of Buenos Aires government, which closely mirrors national CPI levels. In Buenos Aires, the increase in January was recorded at 21.7%, marking the highest rate since 2012. The interannual variation of the index amounted to an impressive 238.5%.

Economist RocĂ­o Bisang from EcoGo has forecasted an inflation rate of 21,2% for January based on her analysis of various factors such as prepaid bills and transportation costs. For Lorenzo Sigaut Gravina, director of Equilibra consulting firm, preliminary data suggests that January’s inflation rate may have been lower than December’s at 22.5%. He also pointed out that wages lagged behind prices leading to a decrease in purchasing power which acted as a brake on consumer spending resulting in slowing pace of inflation in January.

According to a study conducted by Ferreres & Asociados based on over fifteen thousand prices of goods and services in GBA (Greater Buenos Aires), inflation for January is estimated to be close to 18% monthly with an interannual growth rate of around 244.5%. Economist Fausto Spotorno from Ferreres & Asociados highlighted that core inflation advanced at a monthly rate of 19.5% which marks an increase of around 268.8% annually when compared to last year’s rates

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