Macroeconomic Forecast Argentina

BMI View: Inflation expectations in Argentina continue to tick up, with June's Universidad Torcuato di Tella index now indicating that consumers expect price growth to average 32.5% y-o-y over the next 12 months. With still high fiscal spending and plus-30% wage increase deals suggesting that there is little prospect of inflationary pressures easing over the coming months, we believe that price growth is in danger of spiralling out of control. As such, we hold to our view for official inflation to reach 21.0% by year-end.

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