- Inflation reached 102.5% in February.
- Most of the population now lives in poverty.
- The food and beverage industries saw the most recent substantial increase.
Argentina‘s inflation rate has soared past 100% for the first time since the end of hyperinflation in the early 90s.
According to the country’s statistics department, inflation reached 102.5% in February, implying that the cost of numerous consumer products has more than doubled since 2022.
Argentina has been in economic difficulty for years, and
Its government has been trying to stem price rises by capping the prices of food and other products.
However, the food and beverage industries saw the most recent substantial increase, with prices rising by 9.8% in February compared to January.
According to Argentine media, this surge could be attributed in part to a dramatic spike in meat prices, which jumped by about 20% in a month. Bad weather conditions, a prolonged heatwave and a drought seriously harmed animals and crops, claimed local news outlet Ambito.
Although the symbolism of the inflation rate exceeding 100% is striking, the consequences of soaring inflation have long been felt in Argentina.
Last September, demonstrators came to the streets to demand action to address rising expenses of living, and, in February, Argentina’s central bank said that a new 2,000-peso (£8.13; $9.9) currency will be issued in response to the surge in consumer prices.
Argentina’s government has long attempted to keep inflation under control, but divisions have marred the country’s economic policy.
Three economy ministers were replaced in four weeks last summer as Argentina’s economic crisis worsened, and President Alberto Fernández is said to be at odds with his deputy, Cristina Fernández de Kirchner, over how to address the country’s economic problems.
The International Monetary Fund (IMF) granted another $6 billion (£4.9 billion) in bailout funds in December.
It was Argentina’s latest payment under a 30-month program that is expected to total $44 billion.
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