Argentine Executives Expect Already Sky-high Inflation To Go Higher
Argentina's surging inflation will just keep rising, according to the vast majority of executives surveyed in a poll released on Thursday, even though consumer prices are already on pace to end this year in triple digits.
The government of President Alberto Fernandez has struggled to contain steadily rising consumer prices, expected to reach an annualized rate of 100% by the end of this year, as a prolonged economic crisis shows no signs of abating in a country where many shops no longer post prices since they are forced to constantly mark them up.
The poll conducted by D'Alessio IROL consultancy showed that 70% of executives who responded to the survey believe inflation will increase "significantly" this year while another 21% see a "moderate" rise in consumer prices.
Only 4% think the inflation rate will stay flat, while 5% think it will go down a little.
D'Alessio IROL interviewed 245 executives between August 5 and 17.
Since then, monthly inflation is expected to ease slightly in September to rise by 6.7% while annual prices are still seen zooming past 80% for the month, ahead of official data set to be published on Friday.
Some of the executives surveyed were also downbeat on their general expectations for Argentina's financial and economic wellbeing, with 10% saying the future will get "much worse" and nearly 40% expecting the future to be only "moderately worse."
The business leaders criticized government's efforts to rein in price spikes, which include foreign exchange interventions, as well as some trade barriers.
The survey also showed they expect better results from own their companies than for the country despite what they described as a "general retraction" and new private sector hiring on a "stable trend."
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