The IMF is in Buenos Aires this week on its second technical mission to assist the development of a new inflation index. It is difficult to accurately assess the starting point for discussions, but the balance of evidence suggests that inflation is currently running at around 25% (well above the official measure of 10%) and that it is likely to reach 30% over the coming months. The peso has to fall further to maintain competitiveness – we think it will reach 4.50/$ over the next year (from 4.05/$ currently).
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services