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Argentina Sees Second Consecutive Monthly Slowdown in Inflation

Analysts attribute the easing to weaker regulated‑price moves, a temporary YPF fuel buffer and exchange‑rate calm.

Overview

  • Private consultancies and the BCRA’s REM expect May inflation of roughly 2.1–2.5%, with the central bank survey specifically at 2.3%.
  • Forecasters point to smaller rises in regulated prices, a stable peso and YPF’s price‑buffer policy — which added a 1% pump rise in mid‑May and was extended through June 28 — as key factors that held down fuel’s contribution.
  • Core pressure remains: food and non‑alcoholic beverages rose faster than the headline in many estimates (some firms put food at about 2–3.4% for May) and services such as rents, telecoms and prepaid health tariffs stayed rigid.
  • Economists warn the disinflation is fragile because of services inertia, consumer inflation expectations above historical norms and policy trade‑offs on rates, reserves and exchange‑rate path; the official INDEC May CPI will be published on June 11 and is likely to shape market and policy moves.
  • Even with the recent slowdown, annualized inflation measures remain high (above 30% in many readings), households still feel price stress on key goods, and analysts see only a gradual convergence toward the 2% monthly range over the coming months.