Key facts
- Argentina's monthly inflation rate was 2.1% in July.
- Argentina's monthly inflation rate was 1.9% in June.
- Argentina's 12-month inflation rate reached 33.8%.
- Argentina's Economy Minister Luis Caputo announced new measures.
- Banks in Argentina will be allowed to lend up to 15% of their dollar deposits.
- US producer prices were unchanged in July.
- US producer prices saw a revised drop in June.
- The Federal Reserve is expected to maintain current interest rates.
Argentina experienced a rise in its monthly inflation rate, reaching 2.1% in July, an increase from the 1.9% recorded in June. The country's 12-month inflation figure also saw an uptick, climbing to 33.8%, according to data released by INDEC.
In an effort to stimulate the economy, Argentina's Economy Minister Luis Caputo announced new measures to provide banks with greater flexibility in lending dollars to companies. This policy change permits banks to lend up to 15% of their dollar deposits, aiming to boost credit availability.
Separately, US producer prices showed no change in July, a development that fell short of economists' predictions for a rebound. This flat performance follows a revised decrease in producer prices in June. The data reinforces the expectation that the Federal Reserve will likely maintain its current interest rates without further hikes.