Consumer price inflation was 2.4 percent in February according to the INDEC.

Consumer inflation in the last month of 2017 in Argentina clocked in at 3.1 percent, taking the cumulative inflation for 2017 to a total 24.8 percent.

The figures, released by the INDEC statistics bureau today showed that the final inflation figures for the year were much higher than the official target of 17 percent.

A significant chunk of the December inflation rate was down to the average 17 percent increase in utilities such as electricity and water compared to November 2017. In comparison to December 2016, utilities cost 55 percent more in December 2017. Over the same period, food increased by 20 percent, clothing 16 percent and transport 20 percent.

The monthly inflation rate jumped in December, given that the month represented the highest monthly inflation rate since June 2016. It was also nearly double the November monthly rate of 1.4 percent.

The above graph shows the cumulative inflation rates since the beginning of the year, differentiating between the average rate as well as goods, services and core inflation rates. Services lead the way in terms of price increases with both goods and core inflation below the average rate. While the inflation rate for services was consistently high, the government might be encouraged that core inflation did not increase to the same extent. Core inflation reflects the long-term trend in inflation rates.

Cumulative inflation was about 40 percent in 2016.

Although the government has recently adjusted its inflation targets upwards, transport increases in the coming months will likely sustain the pressure on prices on consumers.