The surge in inflation rate in Argentina has surged past 102.5% in February 2023, figures declared by the nation’s statistics office reveal, making it the highest number in inflation since the hyperinflation ended in the early 1990s.
The high inflation rates have meant that the prices of many consumer products have increased significantly since 2022.
The most notable recent rise, however, was in the food and beverage industries, where costs rose by 9.8% in February over January.
According to Argentine media, this rise may be partially attributable to a sharp increase in beef prices, which increased by almost 20% in a single month. According to the local news source Ambito, unfavourable weather, a protracted heatwave, and drought had a significant effect on cattle and crops.
In reaction to the increase in consumer prices, Argentina’s central bank announced in February that a new 2,000-peso (£8.13, $9.9) banknote would be released. Last September, protesters went to the streets to demand action to combat the increasing cost of living.
Though the Argentinian government has capped the price of food and other goods in the country in an effort to stop a sharp jump in prices, the inflation rate jump, extremely sharp for February 2023, has been a matter of concern for the last few years.
Numerous individuals are said to living in destitution as a result of years of economic hardship in Argentina. Long-standing efforts by the Argentinian government to control inflation have been hampered by political divides. As the nation’s economic disaster worsened last summer, three economy ministers were replaced within a four-week period. President Alberto Fernández and his assistant, Cristina Fernández de Kirchner, are reportedly at odds over how to address Argentina’s economic issues.
The International Monetary Fund (IMF) authorised an additional $6bn (£4.9bn) in rescue funds in December. It was the most recent payment made to Argentina in a 30-month scheme with a $44bn anticipated final repayment.
