In March, the government announced that inflation is expected to be close to 10%, marking the third consecutive decline in the index. This follows a decrease in the inflation rate from 25.5% in December to 20.6% in January and further dropped to 13.2% in February. Minister of Economy Luis Caputo stated that inflation is collapsing and the core rate is reaching single digits.
According to reports, several factors have contributed to this slowdown, especially driven by a decrease in food prices. Preliminary data for April seem to confirm this trend, with a weekly inflation rate of 0.4%, lower than the previous week. Despite the overall high inflation rate, there are signs of moderation in food prices, with some products even experiencing price declines.
Economists predict that inflation will continue to decrease in the coming months, with April likely to be the last month of substantial rate increases. Factors such as gas price hikes are expected to contribute to general inflation but are unlikely to affect food prices significantly. Amidst the slowdown in food inflation, the overall decline in consumption levels is also evident, impacting retail sales across various sectors.
Experts predict that single-digit inflation is on the horizon, with expectations of reaching this threshold in core and wholesale markets by April. The moderation in food prices is seen as a positive development, reflecting changes in consumption patterns and relative price adjustments in the market. Overall, the trend in slowing inflation is expected to continue, providing some relief to consumers and businesses alike.
In summary, Minister of Economy Luis Caputo announced that March inflation is expected to be close to 10%, marking three consecutive declines in the index due mainly
