Argentina Monthly Inflation Rises to 1.9% in September

Argentina’s monthly inflation rate accelerated to 1.9% in September, up from 1.7% in August, according to the latest data from an Investing.com report. The figure matched the median expectations of economists, signaling a slight uptick while the broader annual trajectory continues to moderate.

Despite the month-over-month increase, the country’s annual headline inflation rate eased to 33.4%. This cooling trend in the year-over-year metric persists as the government navigates challenges in stabilizing the domestic economy.

Drivers of Monthly Price Increases

The September rise was largely attributed to adjustments in regulated prices. These often fluctuate based on government policy shifts rather than market-driven demand. Specific sectors contributing to the monthly increase included:

• Housing, water, electricity, and gas: Prices in this category rose by 3.1%.
• Education: Costs for services increased by 3.0%.

Economic Growth Outlook

Although inflation shows signs of decelerating on an annual basis, the broader economic environment remains constrained by recessionary pressures. Projections for full-year 2026 GDP expansion now stand at 1.5%. This forecast is a revision, landing at approximately half the rate initially expected by investors at the beginning of the year.

The divergence between the slowing annual inflation rate and the muted GDP growth outlook highlights the difficult balance the government faces. Policymakers are attempting to curb long-term price instability while managing an economy that is expanding at a pace slower than previous market forecasts anticipated.