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Inflation in Argentina was over 100 percent in February

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Inflation in Argentina has surpassed 100 percent for the first time since the hyperinflation that the country struggled with in the 1990s. The Argentine statistics agency reported that the increase in consumer prices in February reached the level of 102.5 percent. measured year by year.

As a result of the economic problems that the country has been facing for years, most of its inhabitants live in poverty.

The Argentine government is trying to stop price increases by imposing limits on, among others, for food. Despite this, the food and beverage sector has seen the most dramatic growth recently, at 9.8%. in February compared to January.

Inflation in Argentina exceeded 100 percent.EFE

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According to Argentine media, this increase may have been partly due to a sharp jump in meat prices, which increased by almost 20 percent. within a month. Local news website Ambito reported that the prolonged heatwave and drought had severely affected crops as well as livestock.

Inflation so high that a new banknote was issued

Exceeding the barrier of 100 percent. Of course, the price increase shocks, but Argentinians have been feeling the dramatic effects of the price increase for a long time.

Last September, protesters took to the streets demanding action to counter the rising cost of living, and in February the central bank Argentina announced that a new 2,000-peso note would be issued in response to the price increase.

February is the 13th consecutive month that the South American country has recorded a monthly rate inflation above 4%, widely regarded as the threshold for a healthy economy.

To combat inflation and the depreciation of the Argentine peso, the government of Alberto Fernandez subsidized a series of protected exchange rates dedicated to specific sectors of the economy, effectively making it cheaper for some companies to buy dollars in the foreign exchange market.

Among them are “Dollar Malbec”, for wine producers, “Dollar Qatar” for agencies selling travel packages for the 2022 FIFA World Cup, and “Dollar Coldplay” for concert organizers.

Main photo source: PAP/EPA/Juan Ignacio Roncoroni

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