Inflation accelerates in Argentina and ends 2021 at 50.9%

Rate is one of the highest in the world; The country has been facing an inflationary crisis for several years

Marcos Brindicci / ReutersThe food sector was one of those that pushed up Argentina’s inflation

The consumer price index in the Argentina accelerated in December, when it registered a 3.8% increase, closing the year 2021 at 50.9%, one of the inflation highest in the world, according to data released this Thursday, 13, by the Instituto de Estadísticas, an official government agency. In the year, the price of food increased 50.3%. The highest rates were those of restaurants and hotels (65.4%) and transportation (57.6%). In 2020, a year of paralysis of the economy due to the covid-19 pandemic, Argentine inflation had been 36.1%. In 2019, it registered 53.8%. For 2022, the government projected an inflation rate of 33% in the national budget, which was ultimately rejected by Parliament, where the opposition criticized the figures for being unrealistic. According to a survey by the Central Bank, inflation this year will be 55%.

Argentina is in negotiations with the International Monetary Fund (IMF) to reach an extended facilities agreement to replace the US$44 billion loan signed in 2018 under Mauricio Macri. However, the center-left government Alberto Fernández could not move forward with a new agreement due to differences on how to achieve fiscal balance, according to the head of state himself. Argentina faces payments to the IMF of US$19 billion this year and another US$20 billion in 2023, in addition to US$4 billion in 2024, and the country needs to find an understanding that allows it to defer these payments. At the end of March, almost US$3 billion will be due.

*With information from AFP

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