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Banco Provincia Warns Argentina's Monthly Inflation May Not Fall Below 2% in First Half of 2026

Such persistence would put the 10.1% inflation goal in the 2026 budget out of reach.

Overview

  • An analytical report from Banco Provincia’s Gerencia de Estudios Económicos projects a floor above 2% for monthly inflation during the first six months of 2026.
  • The assessment points to exchange-rate dynamics, increases in public and private service prices, and a newly reweighted CPI basket that began this month.
  • The study notes that higher fuel taxes and a possible removal of subsidies could reinforce elevated monthly readings.
  • Maintaining monthly inflation above 2% through midyear would be sufficient to prevent achieving the 2026 budget’s 10.1% annual target.
  • The report cites December 2025 inflation of 2.8% and a 2025 total of 31.5% as a significant deceleration, yet still high by regional standards, with two months of increases matching a full year in Brazil, Chile, or Uruguay.