BUENOS AIRES Oct 4 Argentina's annual inflation
rate will be between 35 percent and 36 percent this year, a
government official said on Tuesday, higher than an earlier
government estimate but below economists' estimates last month
for inflation above 40 percent.
Deputy cabinet chief Mario Quintana said in a radio
interview that expectations for inflation of about 40 percent in
2016 were false and that inflation would end the year "well
The central bank is expected to release the results of its
new monthly economists survey on growth and inflation later on
Tuesday. Analysts in last month's poll said they expect
inflation of 41 percent this year and 19.8 percent in 2017 in
greater Buenos Aires, which is used as a proxy for national
One month after taking office in December, center-right
President Mauricio Macri's administration said that it hoped to
end 2016 with inflation between 20 percent and 25 percent.
Macri ordered the statistics agency closed in order to
revamp data collection methods that were widely discredited
under former President Cristina Fernandez.
The statistics agency resumed publishing inflation data for
greater Buenos Aires in May but has not released its
calculations from January through April nor published annualized
Inflation is initially thought to have increased under Macri
after his government lifted capital controls and ended some
subsidies. Finance Minister Alfonso Prat-Gay said in June the
annualized rate of inflation through May was likely 40 percent
to 42 percent, although he said it would start falling in June.
The central bank, under a new chief appointed by Macri, has
adapted a formal inflation targeting scheme and expects
inflation of between 12 percent and 17 percent in 2017 and 8
percent to 12 percent in 2018.
Earlier Tuesday, the International Monetary Fund said 2017
inflation in Argentina would total 23.2 percent, higher than the
government's 17 percent expectation. The IMF visited Argentina
for the first time in 10 years last week and praised Macri's
program of market-friendly reforms.
(Reporting by Maximiliano Rizzi; Writing by Luc Cohen; Editing
by Bill Trott)