Argentina’s Inflation Tops 100 Percent For First Time In 30 Years

Argentina, the second-largest economy in South America, has reported an annual inflation above 100% for the first time in over three decades. The country’s government statistics agency announced that February’s inflation reading clocked 102.5%.

This was the first time inflation had touched triple figures since a period of hyperinflation in 1991.

The Consumer Price Index showed a higher-than-expected monthly jump of 6.6%, and a 13.1% year- to-date increase. Food and drink are among the items that appreciated the most, with a 9.8% increase in February compared to the previous month, followed by IT and communications with a 7.8% increase, and hospitality with a 7.5% jump.

Shops and homes across the South American country are feeling the impact of skyrocketing prices as one of the highest inflation rates in the world erodes consumer buying power dramatically. With inflation so high, prices change almost weekly, creating a major talking point ahead of crunchelections later this year.

Argentina has been buffeted by crippling inflation and February is the 13 th straight month that the country reported a monthly inflation rate above 4% – generally considered a threshold for healthy economies.

To fight the rising prices and the depreciation of the Argentinian peso, the government has subsidized a series of protected foreign exchange rates dedicated to specific sectors like tourism andwine, making it cheaper for certain businesses to purchase dollars on the exchange market.

However, these measures are not enough, with everyday citizens still bearing the brunt of high food prices.