Uncontrolled inflation in Argentina reaches 102.5% in 12 months to February

The retail price index in Argentina It increased 6.6% in February over January and exceeded 100% in 12 months, according to data from the INDEC statistical institute published on Tuesday.

Inflation reached 102.5% in the last rolling year, one of the highest records in the world, although the phenomenon is chronic after almost 50 years of sharp rises in the cost of living in Argentina. In the first two months of the year, the rise in consumer prices reached 13.1%.

The general level of retail prices will increase 100% this year, according to the latest survey of expectations released by the Central Bank, based on reports from the largest banks and private economic consultancies in the country.

The government of President Alberto Fernández had estimated a much lower annual rate in the 2023 national budget, 60%.

“The item with the highest incidence at the general level in February was Food and Non-alcoholic Beverages (+9.8%), mainly due to the incidence of the increase in meat and dairy products”, according to the INDEC report.

The Minister of Economy, Sergio Massa, renewed in February a voluntary agreement of “Fair Prices” with supermarkets and food, hygiene, clothing, telephone, education and other items companies, to de-index the economy, with expected increases of 3.2% per month up to June in about 2,000 products.

In 2022, the retail inflation rate reached 95.8%.

Source: AFP