© Reuters. A homeless person sleeps on the street in downtown Buenos Aires, Argentina, August 22, 2022. REUTERS/Agotin Markarian/File Photo
Expectations of higher consumer prices in Argentina remain firmly in triple-digit territory, a monthly survey of analysts conducted on Friday showed, although expectations are down slightly compared to last month’s survey.
Analysts in a survey conducted by the Central Bank of the South American country expected annual inflation this year to reach 142.4%, down from 148.9% in the bank’s previous survey.
Sky-high inflation has hurt Argentina’s flagging economy, as the ranks of the poor swell and the peso currency steadily weakens.
For the month of June, analysts polled expected prices to have risen 7.3% in the month. The monthly inflation rate in May was 7.8%, according to the national statistics agency.
By 2024, analysts see the annual rate of consumer price rise falling to 105%.
Latin America’s third largest economy has also been strained by a historic drought that has exacerbated an ongoing currency crisis. The survey found that economic activity is expected to contract by 3% in 2023 from 2022.
Analysts see the Argentine peso, which is currently officially valued at 261 pesos to the US dollar, ending this year at about 408 units per dollar, and 2024 at 904 pesos per dollar.
The central bank surveyed 39 respondents from June 28 to 30.
Rising prices and falling foreign reserves pose a particularly severe challenge to the left-leaning Argentine government, ahead of the October general election.