- Argentina’s annual inflation rate ended 2023 at 211.4%, the highest since the early 1990s, surpassing Venezuela’s rate for the first time in decades according to new data.
- Monthly inflation hit 25.5% in December, slightly below forecasts, after the peso was sharply devalued by the new libertarian President Javier Milei.
- The high inflation underscores the huge challenge for Milei’s new government to tame prices, with more interest rate hikes expected to bring inflation down to target.
Argentina‘s annual inflation rate ended 2023 at 211.4%, the highest since the early 1990s, propelling the embattled South American country’s year rise in prices above Venezuela for the first time in decades, according to official data released on Thursday.
Monthly Inflation Also Hits 25.5% in December
Argentina‘s monthly inflation rate hit 25.5% in December, slightly below forecasts, after the peso currency was sharply devalued last month by the new libertarian President Javier Milei upon taking office Dec. 10. Milei has pledged to get high inflation under control.
Inflation Data Underscores Challenge for New Government
The latest inflation data, covering Milei’s first month in office, underscores the huge challenge his government faces in taming prices, despite sealing a key debt agreement with the IMF this week. Milei has warned of hyperinflation without major reforms to cool prices.
Argentina Overtakes Venezuela as Region’s High Inflation Outlier
Argentina has overtaken Venezuela as Latin America’s highest inflation outlier. Venezuela, dogged by years of economic crisis, saw an estimated inflation rate of 193% in 2023 following years of out-of-control price rises.
More Interest Rate Hikes Expected to Tame Inflation
The latest inflation data shows there is more tightening needed through restrictive monetary policy, analysts say. More interest rate hikes are expected this year to bring inflation down to the central bank’s target.