Argentine Prices Cool More Than Expected as Food Costs Slow

  • Consumer prices in Argentina rose 3.3% m/m in May; 48.8% y/y
  • Government’s 29% inflation target for end-2021 looks unlikely
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Argentina’s inflation slowed more than expected in May as the government reintroduced a temporary lockdown to combat the pandemic and food prices cooled considerably.

Consumer prices rose 3.3% from April, less than economists’ forecasts for a 3.8% increase. Annual inflation reached 48.8%, its fastest pace in over a year, according to government data published Wednesday. The annual rate has surged in recent months after finishing last year at 36%.