Argentina doubles its annual inflation: 94.8% in December, the highest in 30 years

First modification: 01/13/2023 – 03:15

Argentina’s annual inflation reached its highest rate in more than 30 years in December as prices nearly doubled compared to 2021, according to official data showing how the rise is further eroding consumers’ weakened purchasing power. .

In December, consumer prices rose 5.1% month-on-month, according to INDEC, while inflation in the 12 months to December reached 94.8%, a figure not seen since 1991.

Argentina is battling one of the highest inflation rates in the world, as rising prices hamper growth and force retailers to constantly update price tags on shelves.

“The money is not enough, the salaries are not enough, inflation continues to rise and we have already started the year with increases in the bus ticket, clothing, food,” said Griselda Melle, an independent worker, while doing her shopping.

In a recent interview, Economy Minister Sergio Massa predicted that December inflation would not exceed 5%, adding that monthly increases should be around 3% in April.

“It is a psychological factor that wears out because… wages do not increase as inflation increases,” said Aurelio Narvaja, a 41-year-old professor. Although many economists expect monthly inflation to remain in line with the December rebound, factors other than the country’s economic recession or the price ceilings set by the government pose high risks.

Isaías Marini, an economist at the consulting firm Econviews, points to the scarcity of foreign currency as one of those factors. “The shortage of (US) dollars may translate into further escalation of the parallel (market) dollars,” he said, adding “which would lead to higher inflation.”

Accumulated inflation as of December 2022 was based on the high level of 2021, of 50.9%, and accelerated notably – last November it was 85.3% – due to the impact of the war in Ukraine on prices of food and energy.

With Reuters and EFE