Argentina's Inflation Resilience Amid Market Volatility
Argentina's inflation shows resilience against market volatility, with July's rate slightly increasing to 1.8% from June's 1.6%. Annual inflation slowed down to 36.6%. Despite peso depreciation, price dynamics remain stable, supported by austerity measures spearheaded by President Javier Milei ahead of October's mid-term legislative elections.
Argentina is witnessing a slight uptick in monthly inflation rates, which rose to 1.8% in July from 1.6% in June, according to a Reuters poll. This comes despite recent market volatility marked by a 12% depreciation of the peso and approaching legislative elections.
The annual inflation rate is showing signs of easing, falling to 36.6% from June's 39.4%, a stark drop from the high of 289% at the start of 2024. Analysts suggest that regulated sectors and austerity measures have helped stabilize the economy despite external pressures.
President Javier Milei's fiscal policies, including a proposed penalty for fiscal deficits and vetoing increased spending, aim to consolidate economic stability as Argentina prepares for crucial legislative elections in October.
(With inputs from agencies.)
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