Argentine inflation rises slightly in November driven by beef prices
Annual inflation likely fell to its lowest level in seven years.
ARGENTINA – Argentina saw a modest increase in consumer prices in November, largely influenced by a rise in beef prices that offset some of the effects of government spending cuts.
The consumer price index (CPI) increased by 2.4% in November compared with a 2.3% rise in October, according to a median estimate from a Reuters survey of 22 economists conducted between December 3 and 9, with official figures expected from the INDEC statistics agency on Thursday.
On a yearly basis, inflation was projected to decline to 30.9% in November from 31.3% in October, marking the 19th consecutive drop from a record high of 289.4% in April 2024.
Analysts from C&T Asesores Economicos noted that beef prices, which had been rising since October, accelerated further in November, affecting the overall inflation rate.
Despite some reduction in consumption over recent years, beef remains a staple in Argentina, with cuts like bife steaks, milanesa schnitzels, and asado barbecue continuing to be widely consumed at homes and in restaurants.
The increase in the CPI was partially offset by online promotions and discounts on other consumer goods, helping to moderate the overall price rise, according to C&T Asesores Economicos.
If the projected 30.9% annual inflation rate is confirmed, it would be the lowest since June 2018, when the rate stood at 29.5%, reflecting the effects of the government’s restrictive fiscal measures.
The decline in the cost-of-living pressure was cited as a key factor in the October legislative elections, where the ruling party led by President Javier Milei secured majority support amid economic volatility and political tension.
Looking ahead, Milei’s administration has indicated a focus on reforming labor laws to lower employment costs, aiming to simplify hiring and dismissal processes for businesses.
These labor changes are also part of requirements from the International Monetary Fund, which seeks to improve Argentina’s economic efficiency and enhance its ability to service its substantial debt obligations
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