Buenos Aires inflation slows by more than a point to 1.7% in August

Inflation in the city of Buenos Aires slowed sharply in August, falling to 1.7% from 2.9% in July. The city’s statistics office attributed part of the change to a reversal in seasonal prices after a strong increase the previous month.

Seasonal prices fell 2.9% in August, compared with a 10.9% jump in July. The drop reflected lower prices for accommodation services, which fell 12.7%, airline tickets, down 4.5%, and tourism packages, down 6.5%. Those categories had been affected by the winter school holidays in July.

Regulated prices also slowed, rising 1.8% after a 3% increase in July. They remain the strongest contributor to persistent inflation, with a 41.6% increase over the past 12 months. Services rose 1.8% in August, down from 3.8% in July, and were up 36.2% year-on-year.

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Food and beverages increased 1.8%, slightly above the monthly average, and made the largest contribution to August inflation, adding 0.32 percentage points. Fruit prices rose 12.5%, while bread and cereals increased 2.3% and milk, dairy products and eggs rose 1.6%.

Core inflation, excluding regulated and seasonal items, stood at 2.1%, one tenth below July and two tenths above June. Overall inflation in the capital reached 33.3% over 12 months and 21.3% in the first eight months of 2026. National statistics were due on Thursday, with consultants and financial institutions forecasting a rate between 1.5% and 1.8%. President Javier Milei had previously forecast an August retail rate below 1%.

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