Argentina’s annual inflation rate soared beyond 100% in February, according to the country’s statistics agency, marking the first time since 1991’s hyperinflation that it has reached triple digits.
According to government figures issued on Tuesday, 12-month inflation reached 102.5% in the second month of the year, with a higher-than-expected 6.6% monthly increase in the Consumer Price Index (CPI) and a 13.1% year-to-date increase.
The government has attempted in vain to curb growing prices, which have a negative impact on people’s purchasing power, savings, economic growth, and the ruling party’s chances of retaining power in crucial elections later this year.
President Alberto Fernandez enacted a series of anti-inflationary measures, including a price ceiling on food and other goods.
The growing problem has been attributed to a number of factors, including a flood of money into circulation by the central bank, as well as a protracted heatwave and following drought that have devastated crops and affected agricultural exports. The high inflation rate has further entrenched the South American nation’s economic predicament.
Argentina has been authorized for a $44 billion financial bailout package by the International Monetary Fund.