Inflation in Argentina: Prices up 98.8% in January

Argentina’s inflation soared to 98.8% year-on-year in January, up four percentage points from last December, according to the National Institute of Statistics and Censuses.

Only in the first month of the year consumer prices they are up 6% compared to December 2022.

Among the categories that showed the most growth are food and beverages, which grew by 6.8%, which is worrisome due to its impact on the cost of a basic food basket.

According to private consultants, inflationary acceleration it manifested itself more strongly in the first three weeks of January, and in the last it somewhat stabilized.

Highest inflation in 30 years

Price action in January is worrisome in the country, which accumulated inflation at 94.8% last year, the highest in three decades and a notable acceleration from the 50.9% recorded in 2021.

The Argentine government, which faces a general election this year, in which economy becomes a central issue for voters, keeps the goal of slowing inflation to 60% a year this year, a task that private economists find difficult to solve.

In fact, the most recent private forecasts compiled by the Central Bank on a monthly basis indicate that inflation will be 97.6% this year.

“The goal of reaching a number starting at 3 in the short term is more a desire of the economic cabinet than a concrete opportunity,” LCG consultancy said, noting that the January figure is a “disappointing” figure after several months when price increases corrected downward.

But Economy Minister Sergio Massa reaffirmed his commitment to “lowering inflation” and questioned those “playing” by making January’s price rebound look like a “disappointment.”

“It’s a problem for the pocket Argentines, definitely. And for us, apart from the anger that this might cause us, it is a challenge that imposes the need to continue to take action,” Massa said on Monday, announcing a new price agreement for beef, the price of which has soared over the past month.

For its part, Ecolatina, a consulting firm, points out that in addition to this “high-end” inflation this year, the possible impact of drought on food prices, wage inertia and restrictions on imports will be added.

(According to the EFE agency).