October inflation was the lowest in almost three years

In October, the inflation registered an increase of 2.7%, marking the lowest monthly rate in almost three years. This data, provided by the National Institute of Statistics and Censuses (Indec), reflects a significant slowdown in the rate of increase in consumer prices, compared to the 3.5% recorded in September.

Over the last twelve months, the inflation accumulated reached 193%, which, although still high, shows a downward trend from the peak of 289.3% recorded previously.

The slowdown of the inflation in October can be attributed to several key factors. First, the government has implemented more flexible monetary policies and a gradual adjustment of the official exchange rate. Since the December devaluation, the pace of dollar adjustment has been set at 2% monthly, which has helped moderate inflation expectations.

This strategy has been crucial to reducing pressure on domestic prices and stabilizing the economy. In addition, the Central Bank of the Argentine Republic (BCRA) decided at the end of October to reduce the reference interest rate from 40% to 35% annual nominal interest, marking the first reduction in six months.

October inflation was the lowest in almost three years

This measure seeks to stimulate economic activity and alleviate the financial burden on consumers and companies. The moderation in inflation has had a notable impact on various sectors of the economy. In the City of Buenos Aires, for example, the consumer price index fell to 3.2% in October, from 4% the previous month.

This decrease was mainly driven by lower increases in food and non-alcoholic beverages, as well as services related to housing. At the national level, the divisions that registered the smallest variations in October were Transportation (1.2%) and Food and non-alcoholic beverages (1.2%).

October inflation was the lowest in almost three years

Data

In contrast, the division with the greatest increase was Housing, water, electricity, gas and other fuels (5.4%), due to increases in rents and related expenses, as well as in electricity and gas supplies.

The October 2024 figure is not only significant because it is the lowest in almost three years, but also because it represents a continuous slowdown in the year-on-year comparison. In October 2023, the inflation monthly was 8.3%, which underlines the magnitude of the improvement in price control.

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