Argentina: Out Of Control Inflation Reaches 124.4%

As elections set for October 22, 2023 are approaching, Argentina finds itself trapped in a series of endless economic crises. The annual inflation rate reached 124.4% in August. According to the Argentine National Institute of Statistics, the growth was 12.4% in August alone. Such a figure, even in annual terms, would be dramatic for most countries in the world; it was the highest monthly figure recorded in Argentina since 1991. Inflation in August was driven up by prices for food and drinks (+15.4%) and healthcare (+15.3%).

The inflation spiral is a consequence of the peso devaluation carried out by the Central Bank in August under the agreement with the International Monetary Fund, to which Argentina owes $45 billion. The terms of the loan were revised for the fifth and sixth time in July 2023.

Thus, the presidential elections will be held in a clearly difficult environment: confidence in the national currency is at its lowest level, the Central Bank’s reserves are negative, and a severe drought has created additional economic problems.

Polls ahead of the election give the lead to libertarian Javier Milei, followed by current Economy Minister Sergio Massa and Conservative spokesman Patricia Bullrich.