Argentina inflation seen at 126.4% in 2023, central bank poll shows

Buenos Aires: Argentina’s inflation rate is seen hitting 126.4 per cent in 2023, well exceeding previous estimates that anticipated a slower rise, according to a central bank poll of analysts released on Friday.

The forecast, which is 16.4 percentage points above the 2023 rate projected in last month’s poll, comes as the South American nation suffers a persistent financial and social crisis.

Annual inflation hit 94.8 per cent in 2022, data from Argentina’s statistics institute showed.

The country’s gross domestic product is seen contracting 3.1 per cent in 2023, a decline 0.5 percentage points greater than was expected in the previous poll.

April inflation is estimated at 7.5 per cent, slightly down from the 7.7 per cent rate seen in March, according to the survey of 38 participants conducted between April 26-28.

The country’s average nominal exchange rate will also likely weaken to 398.5 per US dollar by the end of 2023, analysts projected. By the end of 2024, that figure rises to 862.5 pesos per dollar.