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Milei, who is pledging economic shock therapy such as shutting the central bank and dollarization, won a second-round runoff vote on Sunday with some 56% to rival Sergio Massa's 44%. Milei now faces the huge challenge of turning around the economy once he takes office on Dec. 10. "It is an economy that is in intensive care," said Miguel Kiguel, a former undersecretary of finance at the Economy Ministry in the 1990s. A central bank poll of analysts forecast 185% inflation by the end of the year. In a bid to tamp down inflation Argentina's central bank has hiked the benchmark interest rate to 133%, which encourages saving in pesos, but hurts access to credit and economic growth.

Persons: Javier Milei, Sergio Massa's, Milei, Miguel Kiguel, Lucio Garay Mendez, Vaca Muerta, Eugenio Marí, Hernan Nessi, Adam Jourdan, Daniel Wallis, Chris Reese Organizations: Economy Ministry, Reuters Graphics Reuters, Coldplay, Reuters Graphics, CENTRAL, International Monetary Fund, Libertad y Progreso Foundation, Thomson Locations: BUENOS AIRES, dollarization, Argentina, China, Brazil

☆ Argentina retail prices seen slipping under double digits in October
▼ + stars: | 2023-11-10 | by ( Hernan Nessi | ) www.reuters.com time to read: +3 min

REUTERS/Matias Baglietto/File Photo Acquire Licensing RightsBUENOS AIRES, Nov 10 (Reuters) - Argentina's consumer prices likely rose by less than double digits in October, a Reuters poll showed on Friday, slowing down after hitting a three-decade high in September. The poll, which surveyed 19 analysts, showed consumer prices increasing by 9.9% in the month, slowing from the 12.4% rise in August and 12.7% climb in September, though they warned the slowdown would be temporary. "However, consumer prices are still going up quickly, especially considering the official exchange rate and government controls." The tightly controlled official exchange rate was devalued to 350 pesos per greenback in August, though it currently trades for nearly three times that on the informal parallel market. "The effect of August's peso devaluation was diluted, but it seems more inertia is building now than from before the previous exchange rate shock."

Persons: Matias Baglietto, Sergio Massa, Javier Milei, Lucio Garay Mendez, Massa, Garay Mendez, Jeronimo Montalvo, Hernan Nessi, Kylie Madry, Chizu Organizations: Mercado Central, REUTERS, Economy, U.S, Thomson Locations: Buenos Aires, Argentina, BUENOS AIRES, Empiria

If it cannot secure fresh funds before an approaching deadline, Argentina risks defaulting on repayments to the IMF. Analysts say the central aim of these economic adjustments is to signal to the IMF that Buenos Aires is committed to the program. The left-wing administration has been locked in negotiations with the IMF for months over whether to front-load tranches of the $44 billion program. Both parties said on Sunday that an agreement on the fifth IMF review was close, but not yet finalized. Reporting by Lucinda Elliott in Montevideo, Anna-Catherine Brigida in Buenos Aires, Rodrigo Campos in New York.

Persons: Sergio Massa, Eduardo Levy Yeyati, Eyeing, Marina dal, EcoGo, Alejo Czerwonko, Yeyati, Lucinda Elliott, Catherine Brigida, Rodrigo Campos, Jorgelina de, Karin Strohecker, Catherine Evans Organizations: International Monetary Fund, Economy, Peronist, IMF, Reuters, Emerging, UBS, Analysts, Thomson Locations: BUENOS AIRES, Buenos Aires, Argentina, refinance, Washington, Beijing, Montevideo, Anna, New York, Jorgelina de Rosario, London

BUENOS AIRES, Jan 12 (Reuters) - Argentina's annual inflation hit its highest rate in more than 30 years last month as prices almost doubled versus a year ago, official data released on Thursday showed, further eroding consumers' dwindling purchasing power. The annual rate marks the fastest clip of rising prices in more than three decades, or since 1991, according to INDEC. Argentina is battling one of the highest inflation rates in the world as soaring prices hamper growth and force shopkeepers to constantly update price tags. In a recent interview, Economy Minister Sergio Massa projected December inflation would not exceed 5%, adding that monthly increases should edge down to around 3% by April. "It's a psychological factor that wears you out because... wages do not increase like inflation increases," said Aurelio Narvaja, a 41-year-old teacher.

☆ Argentina inflation tops minister's forecast, annual rate at 95%
▼ + stars: | 2023-01-12 | by ( Hernan Nessi | ) www.reuters.com time to read: +2 min

BUENOS AIRES, Jan 12 (Reuters) - Argentina's monthly inflation rate stood at 5.1% in December, official data released on Thursday showed, while annual inflation in the South American country reached nearly 95% over the previous 12-month period. December's rate of rising consumer prices came in above the economy minister's expectation but slightly below analyst forecasts. In a recent interview, Economy Minister Sergio Massa projected monthly inflation would not exceed 5% in December and said the government aims for it to edge down to around 3% in April. Economists expect monthly inflation to hover around 5% at the start of 2023, driven by an economic slowdown and price cap agreements on retail products. Reporting by Hernan Nessi; Editing by Jonathan Oatis, Brendan O'Boyle and Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

☆ Argentina government aims to undershoot inflation forecasts in December
▼ + stars: | 2023-01-12 | by ( Hernan Nessi | ) www.reuters.com time to read: +1 min

The South American country is battling rampant inflation which is set to end the year at around 95.5%, one of the highest levels in the world. In a recent interview, Economy Minister Sergio Massa said monthly inflation would not exceed 5% in December and noted the objective was for it to stand at around 3% in April. However, estimates from 19 local and foreign analysts showed a slightly higher rise in the consumer price index for the late month of 2022, with projections ranging from 4.9% to 6.3%. Economists expect monthly inflation to remain around 5% for the start of 2023, driven by an economic slowdown and price cap agreements on retail products. "But risks remain elevated, and the shortage of (U.S.) dollars may translate into a further escalation of parallel (market) dollars, leading to higher inflation," said Isaias Marini, an economist at consultancy Econviews.

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