Annual inflation in Argentina at 32-year high
Annual consumer inflation in Argentina rose to 124.4 percent in August, reaching its highest level since 1991. With this figure, the rate of those below the poverty line in Argentina exceeded 40 percent. The annual inflation forecast of the Central Bank of Argentina (BCRA), which was 141 percent, was updated to 169 percent after the latest data was released.
The economic crisis is growing in Argentina. Annual consumer inflation in the country rose to 124.4 percent in August, reaching its highest level since 1991. With this figure, the rate of those below the poverty line in Argentina exceeded 40 percent.
UNCERTAINTY CAUSED BY-ELECTIONS
The annual inflation forecast of the Central Bank of Argentina (BCRA), which was 141 percent, was updated to 169 percent after the latest data was released. However, there are also comments that inflation could reach 180 percent due to the uncertainty caused by the elections to be held next October.
Argentine Economy Minister and Presidential candidate Sergio Massa had previously reduced the tax rates of employees in order to reduce the impact of inflation on employees.
Argentina has been struggling for some time with the depreciation of its currency Peso, inflation reaching three digits again after 32 years, negative foreign exchange reserves, and the crisis in the agriculture and livestock sector, which constitutes a significant part of the economy, with increasing drought.
MEAT PRICES DETERMINED IN DOLLARS
In addition, Argentina is trying to obtain the 44 billion dollars in aid pledged following the agreement with the IMF, while seeking to avoid a 16 billion fine imposed by US courts in favor of shareholders of YPF, the energy company that was nationalized a decade ago.
Due to the constant changes in prices, meat prices in Argentina, which is an important livestock country, started to be determined in dollars.
Source: Istanbul Trade Gazette
