The CPI for Greater Buenos Aires was published by the National Institute of Statistics and Censuses (Instituto Nacional de Estadística y Censos, INDEC) in the last two weeks. As anticipated in the previous release, both core and headline inflation gained momentum in February. It rose 2.5% and 1.8%, respectively, greatly driven, though not exclusively, by regulated prices.
Additionally, the following inflation figures for February were released: CPI for the City of Buenos Aires, CPI for the province of Córdoba, CPI for the province of San Luis, the wholesale price system and the construction cost. Headline retail inflation increased, but to a level below that of the CPI for Greater Buenos Aires, as released by the INDEC. It should be noted that core components posted a decrease from last month in the City of Buenos Aires and the province of Córdoba (data not available for the province of San Luis). Wholesale prices and the construction cost slowed down compared to January, except for the domestic wholesale price index (índice de precios internos al por mayor, IPIM).
In turn, estimates and high-frequency indicators from public and private sources monitored by the BCRA show heterogeneous signals about March’s inflation. The BCRA has a cautious approach given the volatility in monthly inflation and is ready to take action if necessary.
Based on all the available information, the BCRA has decided to keep its monetary policy rate, the center of the 7-day repo corridor, unchanged at 24.75%.
The BCRA will continue taking anti-inflationary measures to ensure a sustained disinflationary process towards its inflation target between 12% and 17% in 2017.
