Inflation Soars Past 100% in Argentina

The prices of all essential goods have literally gone through the roof in Argentina.

Year-over-year inflation rates surpassed the 100% mark in Argentina. According to the country’s statistics agency (INDEC), prices for many consumer goods have doubled since 2022.

Skyrocketing prices will no doubt further complicate the country’s economic health. Higher costs will erode people’s purchasing power and render bank savings worthless.

#DatoINDEC
Los precios al consumidor (#IPC) subieron 6,6% en febrero de 2023 respecto de enero y 102,5% interanual. Acumularon un alza de 13,1% en el primer bimestre https://t.co/nYndki01f9 pic.twitter.com/B98rPAl6dA

— INDEC Argentina (@INDECArgentina) March 14, 2023

Inflation has been fueled mostly by soaring meat prices, which have risen nearly 20% in just a month.

To make matters worse, heat waves and droughts have ravaged Argentina’s countryside, leaving livestock and crops in short supply.

The deteriorating economic situation has faded the political prospects of the current left-leaning government led by Alberto Fernández, whose Justicialist Party is often blamed for Argentina’s current economic prices.

However, the party argues that it has used all the tools at its disposal to contain inflation, including price caps. Nevertheless, the Argentinean peso continues to lose force against the US dollar, making imports extremely expensive.

The country’s central bank is now talking about issuing higher-denominated 2,000 peso bills in response to the rise in consumer prices.