Argentina's pace of monthly consumer-price increases moderated in June, with inflation slipping to 1.9% from May's 2.1%, according to data published Tuesday by the national statistics agency INDEC. The June reading represents the third month in a row that monthly inflation has slowed and matched the expectations of market analysts.
Measured on an annual basis through June, the consumer price index rose 33.5%, up from 33.2% in the previous month. That 12-month figure was marginally below the 33.6% forecast provided by analysts.
Breaking down price movements by category, recreation and culture experienced the largest increases in June, driven chiefly by higher costs for package holidays. Housing and utilities also registered notable gains during the month. At the other end of the distribution, communications and clothing and footwear recorded the smallest rises in prices.
Separately, Argentina's central bank has guided expectations for the macroeconomic outlook by projecting inflation of 30.0% by the end of the year and forecasting economic growth of 3% for the period.
Context and implications
The June data underline a continuation of a recent easing in month-on-month inflation rates while the annual rate remains elevated. The sector-level results point to uneven price pressure across the economy, with leisure-related services and housing costs climbing faster than communications and apparel. The central bank's year-end inflation projection and growth forecast provide the policy backdrop against which these price trends will be evaluated.
Data source
All figures cited here were released by INDEC and reflect the agency's reported monthly and 12-month consumer price movements through June.