2023-06-16 16:10:00
The Central Bank of Argentina (BCRA) kept at 97% the economy’s reference annual interest rate. The announcement was made on Thursday 15th, one day after the National Institute of Statistics and Censuses (Indec) released a slight monthly deceleration in prices in the country in May.
The annual inflation rate in Argentina is at 114.2%. By way of comparison, in Brazil, annual inflation is at 3.94%, according to the Brazilian Institute of Geography and Statistics (IBGE). In May, Argentine inflation was 7.8%, a slight deceleration compared to April, 8.4%.
“In May, monthly inflation registered a deceleration in relation to the previous month, in line with the projections of the monetary authority. The various indicators of high frequency of wholesale and retail prices monitored by the BCRA suggest a further slowdown in the pace of price growth so far in June,” said the Central Bank of Argentina.
“The BCRA will continue to monitor the evolution of the general price level, the dynamics of the exchange market and monetary aggregates to calibrate its interest rate policy and liquidity management”, added the monetary authority.
The BCRA has been raising interest rates for months. In March, went from 75% to 78%; in April, for 81%; in Mayreached 97%, after successive adjustments.
Despite the price deceleration observed in May, market analysts do not project any change in the rise of inflation. The consultancy LCG, for example, estimated that Argentina should close 2023 with inflation around 135%.
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