Annual inflation in Argentina eased slightly in July before last Sunday’s stunning election result sent prices soaring.
(Bloomberg) — Annual inflation in Argentina eased slightly in July before last Sunday’s stunning election result sent prices soaring.
Consumer prices rose 113.4% from a year ago, below expectations but still near the highest level since 1991, according to government data published Tuesday. On a monthly basis, prices rose by 6.3%, reversing two months of cooling inflation but below economists’ expectations of 7.1%.
Construction, recreation and health care led all price increases on a monthly basis in July.
Read More: Out of Options and Money, Argentina Finally Presses Panic Button
The figures are already outdated after outsider candidate Javier Milei pulled off a shocking victory in Sunday’s presidential primary election, defeating both of Argentina’s established coalitions.
The results pushed President Alberto Fernandez to devalue the official peso exchange rate 18% on Monday, by far the biggest one-day move in years. Local businesses hiked prices by even more.
Argentine economists are still sifting through high-frequency data and expect monthly August inflation to surpass 10%, a level not seen since 2002 that will guarantee the annual rate charges further into triple-digit territory.
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