May 9, 2021

Tarantella Berlin

Specialists in law

Argentina Prices Jump More Than Expected to 18-Month High

Argentina’s inflation accelerated last month at the fastest pace in 18 months, threatening to derail a fragile economic recovery six months before key midterm elections.

Consumer prices rose 4.8% in March from February, according to government data released Thursday, far more than the 4.2% median forecast of economists surveyed by Bloomberg. Economy Minister Martin Guzman had said Wednesday that inflation should cool in April after reaching its peak for the year last month.

The monthly figure was the highest since September 2019. Education, clothing and alcoholic beverages led all categories. Prices for food, the most heavily-weighted category, rose slightly below the headline figure. Annual inflation reached 42.6% in March.

“High and accelerating inflation is one of the key macroeconomic challenges facing the government at this stage,” Goldman Sachs economist Tiago Severo wrote in a note after the report’s release. “Inflation dynamics may prove decisive for the performance of the ruling coalition in the upcoming mid-terms.”