Bloomberg News

Argentine Inflation Will Decline to 15%-20%, Credit Suisse Says

October 24, 2011

Oct. 24 (Bloomberg) -- Argentine consumer price inflation may slow in Cristina Fernandez de Kirchner’s second term, Credit Suisse Group AG said in a report published today.

Inflation will decline to 15 percent to 20 percent from the current 20 percent to 25 percent, Credit Suisse analyst Carola Sandy wrote.

“The government is growing concerned that the large wage hikes that have taken place in 2011 could drive inflation further up to levels that would threaten macro stability,” Sandy wrote. “The government will be more accepting of higher interest rates.”

Credit Suisse also sees a faster depreciation of the Argentine currency, updating their 2011 forecast for the peso to 4.3 per dollar from 4.25, and their 2012 forecast to 4.55 from 4.45.

To contact the reporter on this story: Camila Russo in Buenos Aires at crusso15@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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