Last week, January’s CPI for San Luis was published by that province, and the wholesale price index and the construction cost index were released by the National Institute of Statistics and Censuses (Instituto Nacional de Estadística y Censos, INDEC). Consumer prices rose by 1.2% in the Province of San Luis. Wholesale inflation was as follows: 1.5%, domestic wholesale price index (índice de precios internos al por mayor, IPIM); 1.6%, domestic basic wholesale price index (índice de precios internos básicos al por mayor, IPIB); and 1.7%, producer basic price index (índice de precios básicos del productor, IPP), the three indices being affected by a rise in the price of fuel. The construction cost index (índice del costo de la construcción, ICC) rose 2.4%, influenced by a salary increase established in October.
In turn, the estimates and high-frequency indicators from public and private sources monitored by the BCRA show that February’s core and headline inflation will be above the figures recorded in the past few months, mostly as a result of a rise in regulated prices, but without modifying for the time being the disinflation outlook of the monetary authority.
Although core CPI for Greater Buenos Aires in January stood slightly below a path consistent with the annual target of 12-17% for headline CPI (see Monetary Policy Report, page 64), the prospects for February and the expected increase in regulated prices in the coming months call for a cautious approach.
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.
