Argentine CB Forecasts 19% Inflation

Argentine inflation is expected to reach 19.3% in 2018, according to the average forecast in the central bank’s monthly poll on Friday, up from an average projection of 17% given in the same poll published by the bank last month. The Survey of Market Expectations conducted among analysts between Jan. 29 and 31 showed that the average core inflation forecast for this year rose to 16.8% from the previously estimated 14.7%, Reuters reported. Experts consulted by the central bank also reduced their growth estimates for Latin America’s No. 3 economy to 2.9% this year, down from the 3.1% estimated in December’s survey. The gross domestic product was seen growing 3.1% in 2019, below the 3.3% previously estimated. At the end of December the government announced changes in its inflation targets, a decision that gave the central bank room to relax interest rates, a move read by the markets as prioritizing economic growth at the expense of higher inflation.