ARGENTINA—The Week Ahead.

Inflation Likely Continued Decelerating in December
Headline inflation, as reported by INDEC, likely increased by 0.52% m/m in December (0.93% m/m in Dec 07). High food (seasonal factors), housing (higher gas tariffs), leisure (vacation), and others likely kept headline inflation under pressure; however, the overall inflation trend is likely to continue normalizing in a year-over-year basis due to slower domestic demand and lower commodity prices. In 2008, headline inflation likely increased 7.43% y/y (8.5% y/y in 2007). The central bank consensus expects inflation to be about 0.6% m/m.