Inflation projections for the current year place Argentina as the third country with the highest increase in the consumer price index, behind Venezuela and Zimbabwe.according to an analysis by Ámbito based on figures contained in the World Economic Outlook (WEO) report.
as it is happening, Venezuela leads the inflation ranking with an estimated rise of 250% for the current year, followed by Zimbabwe with a projection of 181%.
Apart from the case of Venezuela and some exceptions such as Haiti (the inflation projection is 31%), in general the South American region registers single-digit inflation rates: Brazil and Chile are around 5% and Uruguay is around 7%.
In different neighboring countries a deceleration of the inflationary indices is observed. Such is the case of Chile, which dropped from almost 13% last year to 5% at present, or Peru, from 8.5% to 3% in the same period.
For Argentina, the IMF raised from 60% to 88% its inflation forecast for the year, largely as a result of the impact of the drought on food prices. All in all, the estimate is below private forecasts: in the latest Survey of Market Expectations, analysts predict a rise of 110% for the year.
Argentine-pesos.jpg
Getty Images
Only two countries have inflation above 100%, a group to which Argentina would join if private estimates are met.
In general terms, the pandemic, the monetary expansion policies and the war in Ukraine were factors that caused an acceleration of inflation during the past year. This process is being reversed after the decision of the world’s main central banks to tighten monetary policy. For the current year, it is estimated that only 28 countries out of almost 220 in the world will have inflation of 2 digits or more. In the most extreme cases, 8 countries would register inflation above 30%.
The IMF anticipates that “global inflation will fall, albeit more slowly than initially forecast, from 8.7% last year to 7% this year and to 4.9% in 2024”.
25 countries with more inflation.jpg
Source: Ambito
