Argentina inflation slows to 1.7% in August

Argentina's inflation rate slowed to 1.7% in August, the lowest level in 14 months, according to INDEC. Despite this deceleration, the country remains the second highest in Latin America for monthly inflation, trailing only Venezuela. The year-to-date inflation has reached 21.3%, with a year-on-year increase of 33.5%.

Economic indicators show mixed results across various sectors. While inflation has slowed, regional economies in Argentina face critical situations; nine regional sectors, including citrus, forestry, wine, and milk, reported negative indicators in July due to stagnant producer prices and rising operating costs.

In the broader context of industrial activity, manufacturing and construction sectors have shown signs of deterioration in some regions, with manufacturing experiencing contractions in specific sub-sectors like electrical appliances and textiles. Meanwhile, global dairy prices saw their first increase in four months, rising 2.3% in August, driven by higher costs for milk powder and cheese.