Photo: Reproduction/X Javier Milei
Inflation in Argentina was 25.5% per month in December, the National Institute of Statistics and Censuses (INDEC) reported on Thursday, January 11.
The figure is below the worst forecasts from private consulting firms, which estimated inflation at 23% to 29% per month.
Although the increase was not the worst, inflation in Argentina continues to rise and the cumulative result for the last 12 months broke another record.
Currently, annualized inflation is 211.4%.
Thus, Argentina ended 2023 in the same inflationary spiral in which it began, having recorded annual inflation of over 100% almost every month of the year, breaking the records of the posthyperinflation period at the turn of 19801990.
Also read: Why inflation in Argentina is higher than reported
The sector most affected by inflation in December was goods and services, which rose 32.7%. The healthcare sector follows with 32.6%.
This is the first inflation index to cover Javier Milei's government, which began with the presidential inauguration on December 10th.
It is important to highlight that the measures taken by the current president have had a significant impact on inflation, despite the serious consequences of the previous government, in particular Sergio Massa's Platita plan.
In particular, there was the devaluation of the peso by 50% in the official exchange rate announced by the Minister of Economy Luis Caputo on December 12th a measure to reduce interventionism and dismantle the Argentine economy.
Although most Argentines do not have access to this exchange rate due to government restrictions on the dollar, the official exchange rate is a reference in the market and its adjustment creates a cascade effect.
Other measures taken by the Milei government, such as the Decree of Necessity and Urgency (DNU) economic packages and the omnibus law, may have had a speculative effect, but not a direct one.
After all, the decree only came into force on December 29th and the bill still needs to be evaluated by the Argentine parliament.
The inflation index appeared a day later…
Read more: Subscribe to Crusoé, the publication that monitors ALL powers of the Republic.