The National Institute of Statistics and Census (INDEC) revealed how much the inflation August. And after the data, which lined up a lot with market expectations, investors began to ask again How to continue protected for the future.
Inflation reported by INDEC, below expected
Punctually, the August Consumer Price Index (CPI) was 1.9%, so The accumulated since January reached 19.5% and year -on -year growth was 33.6%. In comparison, analysts surveyed by the Central Bank of the Argentine Republic (BCRA) for their survey of market expectations (REM) expected 2.1%.
“August inflation matched the July registration and marked the fourth consecutive month with a variation below 2%, a phenomenon that was not seen since 2017. Despite the context of electoral uncertainty and exchange volatility, inflation did not show large fluctuations, although it did not stop descending,” he said Julián OruéEconomist of the Freedom and Progreso Foundation (LYP).
“The measures implemented by the Ministry of Finance, such as maintaining the amount of constant pesos through high interest rates and achieving a total Over roll, together with the BCRA’s decision to increase paid lace to encourage placement in titles to more than 60 days contributed to stabilize the monetary base and maintain balance in the money market. Although at the expense of holding high rates that impacted the economic activity,” he said The specialist.
CER bonds, the best alternative against inflation
In this context, local brockers research teams started to recommend the Positioning in bonds linked to the reference stabilization coefficient (CER)which, in turn, is linked to inflation.
“By construction, the best option to cover inflation is bonds linked to Cer. With the rates rise, these instruments yield between 12% and 25% above inflation. In addition, since the government seems to be present in the fixed rate curve, the implicit inflation between both curves were distorted, which would even convey, for the shortest deadline Boncers, “they said from Bridge.
For its part, Paula GándaraDirector of Asset Management Investments in ADCAP Grupo Financiero, He also exposed his Preference for this kind of assets.
“The alternatives to protect against inflation, such as bonds and funds adjusted by CER, are efficient, since the CER is based on the CPI and maintains the purchasing power. The recent high volatility led to these instruments being negotiated with attractive rates, such as Cer +25% for bonds that expire in December and CER +20% for others next year, which indicates over -sales values and potential for recovery. Poslelectoral with greater economic stability could favor the performance of these assets, generating interesting returns, “he summarized.
Source: Ambito
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