Argentina’s November inflation statistics to be released

Screen Shot 2020 12 14 at 10 41 47 AM
Photo: REUTERS/Marcos Brindicci

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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