Last month, annual inflation in Argentina reached the highest level in over 30 years as the prices doubled compared with a year ago, eroding consumer affordability.
Consumer prices rose 5.1% month on month and reached 94.8% on an annual rate, which was the highest in more than three decades, precisely 1991, according to the data released by the national statistics agency INDEC.
Argentina faces the highest inflation in the world as expensive prices slow down growth and forces shop owners to update their price tags.
Sergio Massa, Economy Minister, in a recent interview projected that the inflation would not surpass 5% on a monthly basis and should dwindle around 3% by April.
Lucio Garay Mendez, economist at consultancy EcoGo, said the prices of fruits and vegetables are likely to ramp up during December.
Monthly inflation is in line with most economists’ expectations for December’s uptick.
Meanwhile, outside factors and government setting price caps continue to increase the risks.