June 23, 2024

Argentina’s inflation rate reached its highest level in three decades

2 min read
Argentina's inflation rate reached its highest level in three decades

Estimated reading time: 3 Minutes

The inflation rate for August in Argentina was 7%. Only this year, the rate reached the 56.4% mark and in 12 months the result was 78.5%. Currently, the Latin American country has one of the highest inflation rates in the world, second only to Turkey. Data were provided by the National Institute of Statistics and Census (Indec).

If the economic situation in Brazil is no longer the best, with an inflation rate of 8.73% in a 12-month period, imagine the scenario in which Argentines live. According to the country’s history, Argentina has reached the highest inflation mark in 30 years.

Inflation in Argentina

Among the sectors that make up the Argentine inflation rate, the largest increases were recorded in:

  • clothes and shoes: +9.9%;
  • Goods and Services: +8.7%;
  • Household products: +8.4%.

Among those who have performed at least, but still at a high level, are:

  • Leisure and culture: + 5%;
  • Education: +5%;
  • Communication: +4.1%.

For some economists, Argentina’s inflation rate could reach triple digits by the end of this year. Price escalation is absurd in the country.

Even with lower fuel prices on the international market, analysts point out that inflation should continue at this level. This is because external factors do not have a significant impact on Economie Argentina. The prices of the Latin country are separated from the prices that are practiced in the global scenario.

Inflation: a comparison between Argentina and Brazil

Brazil has faced a significant increase in prices over the past few months. Among the members of the Group of Twenty, the country came to occupy the first positions in the ranking of the highest inflation in the world.

But in the past two months, the country recorded two consecutive contractions, in July and August. The rate is currently 8.73% with an improvement expected for the coming months.

In Argentina, the monthly variance is about the same as for the twelve months cumulative in Brazil. In August, Argentines saw a 7% increase compared to the previous month. This percentage is higher than the inflation that Brazil recorded in 2022, i.e. in 8 months.

Inflation: Latin America

Compared to Latin America, the result is no different, with the exception of Venezuela. In July, inflation in Argentina was seven times higher than that of other countries in the 12-month period.

Only one month in Argentina exceeds the annual inflation rate of many neighboring countries.

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