January 10, 2017. The CPI for the City of Buenos Aires and the CPI for Córdoba—both related to December—were released today. In the City of Buenos Aires, the headline component increased 1.2%, and the core component rose 1.3%. In turn, in Córdoba, the former went up by 1.8% and the latter, 1.4%. With these results, the second half of the year concludes with an annualized inflation rate of 19.1% in the City of Buenos Aires and 19.4% in Córdoba. This represents a sharp slowdown compared to the first half.
The estimates and high-frequency indicators from public and private sources monitored by the BCRA suggest that, with December’s inflation as measured by in the CPI for Greater Buenos Aires, the inflation target for the fourth quarter of 2016 will be met. Likewise, the initial data for January is in line with the disinflation path outlined by the monetary authority.
Based on all the available information, the institution 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% this year.
