Argentina
News

Argentina construction sector inflation jumps after August devaluation

Bnamericas
Argentina construction sector inflation jumps after August devaluation

Inflation in Argentina’s construction sector accelerated further during August following a 22% devaluation of the peso, with several regions registering double-digit increases.

Greater Buenos Aires (GBA), comprising the capital and 24 surrounding districts, registered a 14.7% month-on-month increase in construction prices, compared with a 7.9% increase in July, according to statistics agency Indec.

Construction inflation reached 132% for the last 12 months and 80.6% in the first eight months of 2023. 

In Córdoba province, sector inflation reached 13.2% in August and 124% in the last 12 months. In Mendoza, where costs are monitored by local association Red Edificar, August inflation was 28.6% and 110% in the first eight months. Santa Fe only releases data for its capital, but reported sector inflation of 14.2% and 128% in the last 12 months. 

Construction firms also claim that the country’s competing exchange rates add difficulties by making it more expensive to import materials and equipment, as bureaucracy makes it difficult to obtain US dollars under the official rate. 

Some provincial administrations had problems paying construction firms on time, and they are getting fewer federal funds.

The sector is also affected by electoral uncertainty, as presidential frontrunner Javier Milei vowed to abolish public works and leave infrastructure completely to the private sector. Elections are slated for October 22. 

The head of construction chamber Camarco, Gustavo Weiss, questioned Milei’s proposals and defended the role of the State in infrastructure. Meanwhile, local media quoted sources close to Milei as saying that he thought Camarco was corrupt, given the scandals that have shaken the public works sector in recent years. 

Weiss told news outlet Tiempo that economy minister Sergio Massa, who’s running for the ruling Union por la Patria coalition, hasn’t met with Camarco representatives yet, unlike former security minister Patricia Bullrich, who’s representing the center-right Juntos por el Cambio coalition. 

Bullrich plans to bring back the public-private partnership program planned by the previous Mauricio Macri administration, which failed to materialize due to financing problems.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

Other companies

Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.

  • Company: Sonnedix Chile Holding SpA  (Sonnedix)
  • Sonnedix Chile Holding Spa ., a 50:50 JV between independent solar power producer Sonnedix and IIF Solar Investment Ltd, develops, builds, owns and operates solar power plants g...
  • Company: Hermosillo, Inc.  (Grupo Hermosillo)
  • The description contained in this profile was extracted directly from an official source and has not been edited or modified by BNamericas researchers, but may have been machine...
  • Company: ProMan AG  (ProMan)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
  • Company: Sol Group  (Sol Petroleum)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...