By Hernan Nessi

BUENOS AIRES (Reuters)

Argentina's monthly inflation is likely to remain under 3% in November, near its lowest level of the year, but slightly up from October. This signifies the challenge for libertarian president Javier Milei in tackling prices.

A Reuters poll of analysts published on Tuesday showed a median forecast rise of 2.8% for the month after a rise of 2.7% in October. Estimates ranged from a 2.4% increase to 3%.

Argentina has been fighting to reduce the highest inflation rate globally, which peaked at nearly 300% annually. The expected slight increase follows a steady decline since reaching 25% around last December, when Milei took office and promised to reduce public spending to lower prices and address a significant deficit.

The (downward) trend appears to have reversed, with recent slight acceleration likely driven by increased tariffs for regulated services, transport, fuel, and food, according to local consultancy Management & Fit.

Lautaro Moschet, an economist with Fundacion Libertad y Progreso, anticipates inflation to be “slightly higher.” He noted that while this increase isn't alarming, the quickening of food prices, especially meat, is important to highlight.

The longer-term improvement in the inflation outlook has allowed the central bank to recently cut interest rates. A central bank poll expects annual inflation to end 2024 near 119%, significantly lower than earlier this year's 300% peak and 211% in 2023.

The national statistics agency INDEC is set to publish official inflation data for November on Wednesday.