In the last week, the inflation data of the CPI San Luis, of the Wholesale Price Index System and of the Construction Cost Index, published by INDEC, and the survey of inflation expectations published by the Universidad Di Tella (UTDT) were released. The results of the former can be found in the following table:
| August | September | October | ||
|---|---|---|---|---|
| CPI San Luis | General Level | 2.3 | 0.6 | 1.7 |
| Wholesale Price System | IPIM | 2.7 | 0.4 | 0.4 |
| IPIB | 2.9 | 0.3 | -0.1 | |
| IPP | 2.8 | 0.3 | -0.3 | |
| Construction Cost | ICC | 1.0 | 0.5 | 0.4 |
The retail inflation of San Luis shows a similar behavior to that of other districts, with September records lower than those of July and higher than those of August.
Meanwhile, the inflation of wholesale prices and the cost of construction remained for the second consecutive month at very low values.
Regarding the inflation expectations reported by the UTDT, the median of the national inflation expected for the next 12 months remains at 20%, as in September (it had been 25% in August). These expectations had not recorded values of 20% or less for 2 consecutive months since October 2009.
Likewise, the estimates and high-frequency indicators from state and private sources monitored by the Central Bank show an evolution of prices during the month of October in line with the disinflation path foreseen by the monetary authority.
Beyond the clear disinflation process of recent months, inflation expectations for the year 2017 of the Market Expectations Survey carried out by the BCRA are three points above the upper limit of the established target of 12% to 17%.
Therefore, in order to consolidate the disinflation that has already occurred this year and to advance in the process of convergence of inflation expectations for 2017 towards the announced targets, the Central Bank decided to maintain its monetary policy rate at 26.75% and leave its pass rates unchanged.
The BCRA will continue to maintain a clear anti-inflationary bias to ensure that the disinflation process continues towards its target for this year of a monthly inflation of 1.5% or lower in the last quarter and that inflation expectations for 2017 decrease.
