Argentine inflation rises to 44.6% - the highest in 24 years.
Consumer prices in Argentina rose by 3.9% in May and by 44.6% over the same time last year according to Miguel Bein, an economic consulting group based in Buenos Aires. Alternative estimates remain the only source of inflation data since President Mauricio Macri decreed a statistical data blackout just days after taking office in December.
The 3.9% monthly inflation rate in May was a considerable improvement from the 7.2% registered in April - the highest monthly figure since the depths of the post-convertibility crisis in April 2002. The increase in prices from a year earlier - 44.6% - was nevertheless the highest since January 1992.
The bulk of the slowdown in monthly inflation was mainly due to much smaller rate and fare hikes compared to April, when federal subsidy cutbacks led to 200-300% higher utility rates and 100% higher public transport fares. Core inflation continued to rise, however, with the sharpest price increases coming from miscellaneous goods and services (22.4%), transport and communications (7.2%), entertainment (5.1%), and housing (3.5%).
Food and beverage prices, which impact poor households most, rose by 2.6% in May.
Consumer prices, according to the study, have risen by 24.5% so far this year and by 32% since Macri took office six months ago. Macri had promised that his policy changes, including a steep devaluation and deep cutbacks in public service subsidies, would lead to inflation of "no higher than 20-25%" for all of 2016 - about the same rate as 2015.
The report projects that inflation in June will ease further to 2.1% even with already announced hikes in insurance and homeowners' association dues, and that inflation for all of 2016 might still be held down to around 39%. Argentina's largest labor federation, the CGT, projects that inflation this year may reach 50%.
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