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In February alone, prices in the South American country rose by 6.6 percent, as the statistics authority (INDEC) announced on Tuesday. The annual inflation rate has risen to 102.5 percent. Above all, the prices for food and beverages as well as Internet and telephone charges rose sharply. The inflation rate in Argentina is one of the highest in the world. To fund the budget deficit, the central bank is constantly printing fresh money. The second largest economy in South America suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of a lot of tax revenue.
The national currency, the peso, continues to depreciate against the US dollar, and the mountain of debt is constantly growing. Inflation in Argentina was now additionally fueled by the global situation such as the war in Ukraine and the disruptions in the supply chains.
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