Argentina registers 6.6% CPI in February; Inflation figures explode above 100% yoy for first time since 90s – Economics
The National Institute of Statistics and Census of Argentina released February consumer price index (CPI) figures, which showed a 6.6% increase, mainly due to rising food and beverage prices. The figure is among the highest in Argentina’s history, reaching more than 100% YoY growth, which has local analysts alarmed.
Argentina posts record CPI levels in February
Argentina’s National Statistics and Census Institute released February inflation figures, alarming local analysts. According to the report, the monthly CPI hit 6.6% in February, a higher number than the 6% registered in January. The surge was mainly driven by the rise in food and drink prices, which rose 9.8% and hit Argentines’ pockets. Within this sector, meat led the rise, with prices increasing by more than 30% in some cases.
The inflation reached record annual levels, with prices rising 102.5% year-on-year, the highest number in more than 30 years. Despite this unprecedented behavior, analysts are forecasting further acceleration in March, which would thwart government expectations to keep CPI below 100% in 2023.
Argentina’s figures are the second-highest in Latin America, trailing only Venezuela’s year-on-year CPI, which hit 155.8% in October.
lose the battle
Local economists have expressed concern about the acceleration in prices in the country and have called for changes in the economic policies of Alberto Fernandez’s government. The government has been attempting to contain inflation by imposing price control mechanisms since last October, but these moves have failed to achieve the desired goal.
Martin Vauthier, economist at Anker Latam, a financial advisory group, explained:
What is needed is a stabilization program with a strong fiscal component, an exchange rate consistent with reserve accumulation, and consistent monetary policy designed to reverse expectations and rebuild money demand.
Ecolatina’s research director, Santiago Manoukian, also stated:
The main concern is that the increase has been driven by food and drink, with a larger impact on the consumption basket of the poorest households.
The price increase in Argentina is leading some retailers to set prices in US dollars to avoid constant price adjustment, a phenomenon also common in Venezuela.
On March 4, President Alberto Fernandez announced the creation of a Latino-wide anti-inflation mechanism. The new mechanism would integrate a clearing system that would allow countries to exchange goods with price increases for others between Argentina, Brazil, Cuba, Colombia and Mexico.
What do you think of the raging inflation Argentina experienced in February? Tell us in the comment section below.
photo credit: Shutterstock, Pixabay, WikiCommons
Source: Crypto News Deutsch