By Hernan Nessi

BUENOS AIRE (Reuters) – Argentina’s inflation is expected to rise back to 3.6% December, according to a Reuters poll. The increase could be due consumers spending more on holidays and celebrations in the final month of the year.

A total of 18 foreign and local analysts provided the median results. Their estimates for monthly increases in the Consumer Price Index (CPI), ranged between 3.2% to 4.5%. That’s an increase from the 2.5% in November. Wednesday will bring the December official data.

“The acceleration of inflation versus November is explained by the collection of bonuses and vacations, people spending pesos faster to buy items for parties and holidays,” said Natalia Motyl, economist at the Fundación Libertad y Progreso.

Argentina’s government works hard to reduce rampant inflation. This is happening at an annual rate exceeding 50%. There are caps placed on some cuts of meat and grains exports, along with price freezes on many other consumer goods.

Recent increases by the central bank of India to their benchmark interest rate were 40%. It was its first hike in nearly a year.

“Despite the freezes of some 1,400 products, the initial impact that was seen in November was offset by price increases outside the agreement,” said Isaías Marini, economist at consultancy Econviews, adding meat prices had made a big impact.

It’s a difficult start to 2022 for prices. Inflation in 2021 seems to be the ceiling. Inflation will reach 58% by 2022, according to our projections. This is despite the fact that we have adjusted exchange rates and implemented tariffs.