Argentina's monthly inflation fell more than expected in August and fell to a 13-month low as rising food prices and the cost of living abated.
According to statistics, Argentina's consumer price index rose 2.5% in August from the previous month, the lowest level since July 2020 and below the median growth forecast of 2.9% by economists. A year ago, the country's inflation rate reached 51.4%, one of the highest levels since Argentina's president, Alberto Fern á ndez, took office in December 2019.
It is reported that since March, the government has tightened its control on the devaluation of the peso by crawling the exchange rate peg, an exchange rate system that allows the currency to appreciate or depreciate gradually, in order to reach the expected level. this leads to a slowdown in inflation. As part of its inflation strategy, Argentina has also tightened price controls and restricted beef exports.
Economists expect prices to accelerate again in November, according to a survey by the local central bank. The ruling government, which performed poorly in Sunday's primaries, is also preparing to increase welfare spending before the election. Greater government spending will also affect prices and pesos.