J.P. Morgan sees Argentina inflation soaring to 210% by year-end
** J.P. Morgan revises its forecast for Argentina's annual inflation to 210% by the end of this year following a currency devaluation and ahead of an uncertain presidential election later this month
** The move comes as analysts polled by the country's central bank forecast the annual rise in consumer prices topping 180% and as the monetary authority hiked its interest rate to 133%. It also follows September's annual inflation surpassing forecasts at 138%, sapping wages and savings
** "Risks remain skewed to the upside on escalating FX pressures, growing repressed inflation and indexation mechanisms amid a very uncertain election," JPM says in a note, predicting monthly price rises will average 15.3% through the year's end
** "FX pressures on the parallel FX markets have been mounting as we approach the general elections and are expected to linger," it adds, as the gap between the official and parallel exchange rates has surged to around 200%
** A "battery of recent fiscal announcements" and price-freezing should also pile on pressures, JPM says
** The Oct. 22 vote will see Argentina's current economy minister compete against a former security minister who would eliminate taxes on agricultural exports and an ultra-libertarian who wants to close the central bank and dollarize the economy
Reporting by Sarah Morland; Editing by David Alire Garcia
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