The National Institute of Statistics and Censuses of Argentina released the February figures for the consumer price index (CPI), registering an increase of 6.6%, mainly as a result of increases in the prices of food and beverages. The figure is among the highest in the history of Argentina, reaching a year-on-year (YoY) growth of more than 100%, something that has alarmed local analysts.
Argentina records record CPI levels in February
Argentina’s National Institute of Statistics and Censuses released inflation figures for February, alarming local analysts. According to the reportFebruary month CPI it reached 6.6%, a figure higher than the 6% registered in January. The rise was mainly due to the increase in the prices of food and beverages, which grew by 9.8%, hitting the pockets of Argentines. Within this sector, meats led the rise, with price increases of more than 30% in some cases.
Inflation reached record levels for the year, with prices rising 102.5% year-on-year, the highest figure in more than 30 years. Even with this unprecedented performance, analysts forecast a further acceleration for March, which would frustrate government expectations to keep the CPI below 100% by 2023.
Argentina’s numbers are the second highest in Latam, only behind Venezuela’s year-on-year CPI, which reached 155.8% in October.
lose the battle
Local economists have expressed their concern about the acceleration of prices in the country, demanding changes in the economic policies of the government of Alberto Fernández. The government has been trying to contain inflation by establishing price control mechanisms since last October, but these movements have not achieved the desired objective.
Martin Vauthier, an economist at Anker Latam, a financial advisory group, fixed:
A stabilization program is required with a strong fiscal component, an exchange rate consistent with the accumulation of reserves, and a consistent monetary policy that serves to reverse expectations and rebuild the demand for money.
Ecolatina’s Head of Research, Santiago Manoukian, also stated:
The main concern is that the rise was driven by food and beverages, with the greatest impact on the consumption basket of the poorest households.
Rising prices in Argentina are leading some retailers to set prices in US dollars to avoid constant price revisions, a phenomenon that is also common in Venezuela.
On March 4, President Alberto Fernández announced the creation of a mechanism at the Latin American level to combat inflation. The new mechanism would integrate a compensation system, which would allow countries to exchange goods with rising prices for others between Argentina, Brazil, Cuba, Colombia and Mexico.
What do you think of the high-sounding inflation that Argentina registered in February? Tell us in the comment section below.
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