Inflation in Argentina showed a slight upturn in September, recording an increase of 2.1%, and accumulating 22% in 2025, according to the National Institute of Statistics and Censuses (INDEC). This increase adds to a challenging economic context as President Javier Milei seeks the support of the United States for his economic plan. During a meeting with Donald Trump at the White House, the former president conditioned financial assistance on the outcome of the October 26 legislative elections. This demand increased financial uncertainty, causing declines in bonds and stocks, and it added to a marked deterioration in the IMF's economic forecasts, which also revised downward growth expectations and raised inflation.
The price index remained largely stable in the preceding months, but the depreciation of the peso against the dollar contributed to the recent increase. Among the sectors most affected by the increases are housing, water, electricity, gas and other fuels, as well as education, both at 3.1%. On the other hand, the restaurant and hotel sector showed only a 1.1% increase, reflecting a drop in consumption. Additionally, the IMF adjusted its forecasts for GDP growth, now expecting it to be 4.5%, compared with 5.5% previously projected, and raised its annual inflation expectations to 41.3% for 2025. These data contrast with Milei's government's most optimistic projections, which anticipate a 5% growth and a 10% inflation for 2026.
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