According to analysts consulted by Argentina’s central bank, consumer prices are expected to increase slightly this year, the bank announced on Friday. If this prediction comes true, South America’s second-largest economy will experience near triple-digit inflation for the second consecutive year.
The Argentine monetary authority (BCRA) commissioned an analyst poll, which predicts that consumer prices will rise by 97.6% annually in 2023, up from 94.8% in 2018.
98.4% inflation was predicted to occur by the end of the year in a December forecast, according to the bank’s most recent REM survey.
According to a budget estimate, the struggling government of President Alberto Fernandez expects annual inflation to slip down to just 60% by 2023.
By 2024, however, the survey’s prediction for inflation shows some relief as prices rise by 79.6%, which is higher than its earlier prediction of 75%.
Argentines experience one of the highest rates of inflation in the world, second only to Venezuela in Latin America, as a result of their extended economic crisis, which is characterized by a colossal debt load, persistent deficit spending, and the gradual devaluation of the local peso.
The BCRA stated earlier this week that it would issue a new bill with a face value of 2,000 pesos, which is two times that of its largest existing bank note.
According to the economists surveyed, January’s inflation rate will be 5.6%. According to the official IPC price index, prices increased by 5.1% on a monthly basis in December.
According to the study, economists expect economic growth this year to be 0.5%, while the official exchange rate is predicted to end the year at 327.75 to the dollar.
Comparing that to its current value of roughly 188 pesos per dollar, the tightly controlled official exchange rate would have weakened by 74%.
From January 27 to January 31, the REM survey interviewed 40 professionals, including consultants, financial institutions, and research organizations.
