Argentina Monthly Inflation Highest in Two Decades

Argentina's inflation surged to 12.4% in August — marking the most drastic monthly surge the nation has seen in over 20 years. This concerning figure was disclosed by the country's official statistics agency this Wednesday.

For a nation grappling with persistent economic turbulence, this uptick only exacerbates the hardships faced by its citizens. With the weight of escalating prices and an unpredictable currency already burdening Argentines, this inflation announcement comes just weeks shy of the nation's general elections.

Prices have skyrocketed by an astounding 124% over the last year, with an 80.2% ascent from the start of the year alone.

Analysts had anticipated this inflationary rise, particularly following a 21% devaluation of the peso against the dollarin August. This devaluation was a part of Argentina's negotiations with the International Monetary Fund (IMF) to facilitate credit under a $44 billion loan package.

The country last experienced double-digit monthly inflation in April 2002 when the rate touched 10.4%. The late 80s and early 90s were particularly brutal for Argentines as they endured hyperinflation episodes that soared to a staggering 3,000%.

Anxious citizens are afraid that history will repeat itself. In 2001, the Argentine government disastrously tried to tether the peso to the U.S. dollar. The eventual uncoupling of the peso from the dollar led to the peso’s drastic devaluation, triggering a massive bank run, during which time many peoples’ life savings went up in smoke, and sparking violent social upheaval.

The country's tumultuous economic saga since then has been a whirlwind of inflationary spikes, repeated currency devaluations, and multiple rounds of debt restructuring.