The central bank has held the rate steady since a hike in April. The statement noted 12-month inflation hit 21.4 percent in July, slightly below the rate in June, but well above the central bank's target range of 12 percent to 17 percent.

"High frequency indicators from public and private sources monitored by Argentina's central bank suggest the process of deflation will continue, with August inflation to be below July," the statement said.

"However, core inflation is still above the levels sought by the monetary authority."