Argentina's Inflation Expected to Ease to 4% in July

Argentina's inflation rate in July is anticipated to have slowed to around 4%, following a spike in June, according to a Reuters poll. Analysts cite seasonal factors such as winter tourism and frost-affected produce as contributing factors. Official data from the national INDEC statistics agency is expected on Wednesday.

Argentina's inflation rate for July is anticipated to have slowed to around 4%, following a spike in June, according to a Reuters poll published Monday.

A survey of 18 local and foreign analysts indicated a median estimate of 4.0% and a mean average of 3.9% inflation for July. The slowdown in inflation is attributed to seasonal factors including tourism during winter and frost affecting fruit and vegetables, analysts noted.

Consulting firm C&T projected headline inflation at 4.4% and core inflation at 2.7%, attributing the gap to the weight of seasonal components. Central bank Vice President Vladimir Werning estimated headline inflation at 3.7% and core inflation at 3.2%, with a potential upward price surprise in Buenos Aires identified by SBS Group analysts.

Argentina's national INDEC statistics agency is set to release official inflation data on Wednesday at 1900 GMT.