Argentina Inflation Breaches 100%
Argentina’s annual inflation rate surpassed 100% in February, according to the country’s statistics agency, the first time it has done so since a period of hyperinflation in 1991, more than three decades ago.
According to government figures, 12-month inflation was 102.5% in the second month of the year, with a higher-than-expected 6.6% monthly jump in the Consumer Price Index (CPI) and a 13.1% year-to-date increase.
The impact of skyrocketing costs is being felt acutely in Argentina’s markets, shops, and homes, as one of the world’s highest inflation rates strains people’s budgets.
The administration has tried in vain to contain growing costs, which harm people’s earning power, savings, the country’s economic progress, and the ruling party’s chances of retaining power in the next elections.
Many individuals on the streets can only talk about inflation. It breeds dissatisfaction and rage since wages frequently lag behind the cost of goods, despite government plans to cap prices and limit grain exports in order to bolster domestic supplies.
With such severe inflation, prices fluctuate virtually weekly.
Market returns in the country is a different story. At the start of this year, the stock market exploded higher, up 142% in 2022.
The Argentina peso plummeted versus the US dollar in 2022, declining about 40%. Still, that means Argentina’s stock market appreciated about 35% on a real basis during the year.
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.