Overview

• INDEC reported a 1.9% increase in the national consumer price index for July and a 1.5% core inflation rate, the lowest monthly core reading since January 2018.
• Price pressures in July were driven mainly by vacation-related services and higher vegetable costs, while the roughly 12% peso depreciation at month-end had limited immediate impact.
• Markets faced elevated stress following the late-July peso spike, with short-term rates surging (caución around 45%, Lecap yields above 50%) and liquidity tightened by BCRA measures.
• The Treasury offered a range of Lecap maturities and added three TAMAR-indexed papers to roll over more than ₱15 trillion of maturing peso debt.
• Analysts caution that August inflation may rise if the peso’s depreciation passes through to prices, heightening scrutiny ahead of October legislative elections.