The reason for this inflation is two reasons: excessive money printing by the country’s central bank and the war of the Russian Federation against Ukraine.
The annual inflation rate in Argentina reached a thirty-year high. In particular, it exceeded 100% for the first time since 1991. The Financial Times reported this, citing data from the state statistics agency Indec.
Prices in this country in February increased by 6.6% throughout the month. The annual rate is 102.5%. This is the fastest pace since Argentina emerged from the hyperinflationary crisis of the early 1990s.
The increase in prices is mainly due to excessive money printing by the central bank and the war unleashed by Russia against Ukraine.
Argentina now has one of the highest inflation rates in the world. It ranks fifth behind Zimbabwe, Lebanon, Venezuela and Syria, which also reported triple-digit inflation last year.
The government’s price control program, known as Just prices (Fair Prices), the price of over 1,700 items was temporarily suspended until December. This was not enough to stop the rise in prices due to serious imbalances in the Argentine economy.
The IMF earlier urged Argentina to do more to fight inflation to extend a $44 billion cooperation program.
Argentina is set to receive about $5.3 billion from the IMF in March, pending approval from the lender’s executive board.
As previously reported, the eurozone economy is not expected to grow.
To recall, the IMF upgraded its forecast for global GDP growth in 2023 to 2.9%, which is 0.2% more than expected in October.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.