EM LATAM CREDIT: ARGENTINA: IMF Support , Aug CPI Inflation Due

From MNI EM Markets Analyst:
ARGENTINA: IMF Continuing To Support Government Reform Agenda, Aug CPI Inflation Due

• Amid the mounting pressure on the government following the weekend’s Buenos Aires provincial election result, IMF spokesperson Julie Kozack has posted to X to say that the IMF supports the government’s continued adherence to the fiscal anchor and its comprehensive deregulation agenda. She said that IMF staff are engaging with the authorities in Argentina as they implement their programme for entrenching stability and improving the country’s growth prospects.
• Her comments follow President Milei’s remarks after the surprising scale of his party’s defeat on Sunday, when he reiterated his commitment to his reform agenda, vowing to continue with his FX, monetary and fiscal policies without change.
• Today, attention will also turn to August CPI inflation data at 2000BST(1500ET), where consensus is for headline prices to rise by 2.00% m/m (vs. +1.90% in July), bringing the annual rate of inflation down to 33.7% y/y.
o Aug. National CPI YoY, est. 33.70%, prior 36.60%
o Aug. National CPI MoM est. 2.00%, prior 1.90%
• According to last week’s BCRA economist survey, CPI inflation is expected to end this year at 28.2% y/y, up from 27.3% seen in July and a low of 27.0% in June. Monthly inflation is expected to moderate from around 2% currently to 1.6% by November.