Argentina’s November inflation statistics to be released
Argentina’s National Institute of Statistics and Censuses (INDEC) is set to today release monthly data on the country’s inflation rate.
INDEC is expected to announce a month-on-month Consumer Price Index increase of 3.6% for November, a drop from October’s rate of 3.8%. The announcement bodes well for the country, which has seen inflation climb since July. Argentina’s economy, like those of its regional neighbours, has struggled considerably under the COVID-19 global economic slowdown.
The country’s central bank is facing a shortage of dollars and the economy is expected to see a 10.9% contraction by the year’s end. Additionally, Buenos Aires remains entangled in ongoing negotiations with the International Monetary Fund (IMF) to restructure the $44 billion it owes after the collapse of a loan program last year.
Even with an end to the pandemic in sight, Argentina’s economy will not escape its now three-year recession absent significant structural reforms. These will need to include, at a minimum, a final resolution of the country’s debt woes with the IMF as well as an end to fiscally unsound spending to ease the country’s 13% unemployment and to provide support for nearly 2.5 million workers who have left the job market entirely.
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