Inflation in Argentina reached a worrying 12.4% in the month of August, marking the highest rate since 1991, according to data provided by the National Institute of Statistics (Indec). This index has accumulated an alarming 124.4% in the last 12 months and a significant 80.2% so far this year, placing the South American country among the nations with the highest inflation in the world.
The last time Argentina experienced such high monthly inflation was in February 1991, when it reached an alarming 27%. It should be noted that the last time the monthly rate exceeded the double-digit threshold was in April 2002, at 10.4%, just after the country abandoned its fixed parity system between the Argentine peso and the US dollar.
The sector that contributed the most to this inflationary increase was food and non-alcoholic beverages, with an increase of 15.6%, mainly due to the increase in the price of meat and vegetables. Meat, a fundamental component of the Argentine diet, experienced increases of more than 30%, with common ground beef being the most affected, with an increase of 39.4% in August.
This increase in prices has caused concern among the population, as many people struggle to make ends meet. The 21% devaluation in August, agreed with the International Monetary Fund (IMF) as part of a credit program, triggered a widespread increase in prices and added to the country’s economic challenges ahead of the presidential elections scheduled for October 22.
While the government has announced measures to mitigate the impact of inflation, such as tax benefits and increases in the minimum income, uncertainty persists for the Argentine population as they face this ongoing economic crisis.