Argentina's Inflation Expected to Ease to 4% in July

Argentina's inflation rate in July is anticipated to have slowed to around 4%, following a spike in June, according to a Reuters poll. Analysts cite seasonal factors such as winter tourism and frost-affected produce as contributing factors. Official data from the national INDEC statistics agency is expected on Wednesday.

Argentina's inflation rate for July is anticipated to have slowed to around 4%, following a spike in June, according to a Reuters poll published Monday.

A survey of 18 local and foreign analysts indicated a median estimate of 4.0% and a mean average of 3.9% inflation for July. The slowdown in inflation is attributed to seasonal factors including tourism during winter and frost affecting fruit and vegetables, analysts noted.

Consulting firm C&T projected headline inflation at 4.4% and core inflation at 2.7%, attributing the gap to the weight of seasonal components. Central bank Vice President Vladimir Werning estimated headline inflation at 3.7% and core inflation at 3.2%, with a potential upward price surprise in Buenos Aires identified by SBS Group analysts.

Argentina's national INDEC statistics agency is set to release official inflation data on Wednesday at 1900 GMT.

(With inputs from agencies.)