Inflation rate soars past 100%

Argentina’s annual inflation rate soared past 100 per cent last month, the country’s statistics agency has announced.

It is the first time that inflation in the South American country has hit triple figures since a period of hyperinflation in 1991, which is over three decades ago. Inflation over 12 months clocked in at 102.5 per cent in the second month of the year, according to government data released on Tuesday (March 14).

Argentina recorded a higher-than-expected 6.6 per cent monthly rise in the Consumer Price Index and a 13.1 per cent year-to-date increase, which are denting purchasing power, savings, economic growth and government’s chances in elections next year. In the markets, shops and homes, the impact of rising prices is being felt keenly as one of the highest inflation rates in the world stretches people’s wallets.

ALL MANY PEOPLE CAN TALK ABOUT

The government has tried in vain to tame the rising prices, which dent people’s earning power, savings, the country’s economic growth and the ruling party’s chances of clinging on to power in crunch elections later this year. On the streets, inflation is all many people can talk about.

It is causing frustration and anger, as salaries often fall behind the cost of goods despite government schemes to cap prices and limit grain exports to boost domestic supply. With inflation so high, prices change almost weekly.

Patricia Quiroga, 50, said 100 per cent inflation was impossible to bear as she was waiting on line to do her shopping.

“I am tired, tired, just tired of all this, of the politicians who fight while the people die of hunger,” she told Reuters, adding that “this can’t go on any more”.