Argentina’s inflation reached 3.7% monthly in March, up from 2.4% the previous month, and hit 55.9% year-over-year, according to the National Institute of Statistics and Censuses (Indec), as the country awaits FMI approval for a loan.
The index surpassed the 3% threshold for the first time since September.
This news comes amid local turmoil, with Central Bank reserves draining and speculation about potential changes in the exchange regime following the FMI deal.
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Monthly inflation increased for the second consecutive month.
The index was driven by “Education” (21.6%) and “Food and Beverages” (5.9%).
On the other hand, year-over-year inflation moderated to 55.9%, below February’s 66.9%.
The Argentine government is eagerly awaiting FMI approval for a new program. The multilateral organization announced on Tuesday an agreement at the technical team level for a $20,000 million loan expected to be reviewed by the board this Friday.
The loan aims to bolster the Central Bank’s reserves, which sold over $2 billion in the last four weeks to support the peso.
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In anticipation of the agreement, short-term dollar futures contracts saw significant jumps, with a 5.8% increase on Thursday due to expectations of local currency depreciation—a scenario that could further heat up the inflation index.
Since the beginning of Milei’s government, annual inflation has dropped from 211.4% in 2023 to 117.8% in 2024.
