Argentina Inflation Climbs to 3.4 Percent in March
Consumer prices climbed 3.4% from February, exceeding the 3% median forecast from economists surveyed. On an annual basis, inflation edged down slightly to 32.6% from 33.1% the previous month, data from Indec showed.
Among key components, education posted the largest monthly gain at 12.1%, while transport costs rose 4.1%. Food and non-alcoholic beverages also remained a significant contributor, increasing 6.9% in the greater Buenos Aires region.
Fuel prices have climbed about 23% since the start of the Middle East conflict at the end of February, according to media, citing data by Buenos Aires-based consultancy Eco Go, adding pressure to consumer prices.
Economy Minister Luis Caputo said earlier Tuesday that March inflation likely exceeded 3% and argued that price pressures were partly fueled by market turbulence ahead of last October’s midterm election.
Caputo said stronger demand for US dollars, driven by hedging against a potentially unfavorable election outcome for the government, had fed through to domestic prices.
He said inflation is expected to slow from April.
“Beginning in April, we will see an important deceleration in inflation,” Caputo said during a panel interview. “We will definitely see a disinflation process with greater growth.”
The inflation data arrives against the backdrop of a major energy disruption after the Iran war curtailed flows through the Strait of Hormuz, a critical route for global crude oil and liquefied natural gas shipments.
Brent crude prices initially surged toward $120 per barrel following the closure of the passage before settling near $95. Ongoing shipping constraints, despite a ceasefire, have continued to stoke concerns over global supply.
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