The wholesale price index and the construction cost index (índice del costo de la construcción, ICC) in Greater Buenos Aires were released by the National Institute of Statistics and Censuses (Instituto Nacional de Estadísticas y Censos, INDEC), and the inflation expectations surveyed by Universidad Torcuato Di Tella were also made available last week. These indicators were consistent with the disinflation process already stated in previous releases of the BCRA.
In August, changes in the domestic wholesale price index (índice de precios internos al por mayor, IPIM), the domestic basic wholesale price index (índice de precios internos básicos al por mayor, IPIB) and the producer basic price index (índice de precios básicos del productor, IPP) were 0.4%, 0.3% and 0.3%, respectively. These figures were down against July—2.7%, 2.9% and 2.8%, respectively. The ICC posted a change of 0.5% in August, showing a fall against July’s 1%. As regards inflation expectations surveyed by Universidad Torcuato Di Tella, median inflation over the next twelve months at the national level decreased from 25% in August to 20% in September.
Finally, high-frequency indicators monitored by the BCRA exhibited a heterogeneous performance. However, the disinflation path expected by the monetary authority for the following months remains unchanged. Based on this information, the BCRA reduced the monetary policy rate and the repo rates by 50 basis points, the former standing at 26.75%. Anyway, the BCRA is ready to make changes to the monetary policy for consolidating the disinflation process.
The BCRA will continue to take anti-inflationary measures to make sure that a sustained disinflationary process will go on to achieve this year’s objective (1.5% monthly inflation rate or lower in the last quarter), and inflation expectations for 2017 will go on decreasing.
