01/13/2023 03:09 (act. 01/13/2023 03:09)
Peso notes have fallen sharply in value in 2022 ©APA/AFP
During the severe economic and financial crisis in Argentina, the inflation rate in the South American country rose to 94.8%. The inflation rate last year reached its highest level in 30 years, as announced by the statistical authority (INDEC) on Thursday. In 2021, the inflation rate in Argentina was still 50.9%.
“Our responsibility and our biggest challenge is to reduce inflation, because it is the fever of an economy in crisis,” wrote Economy Minister Sergio Massa on Twitter after the figures were released. “This can be achieved through proper financial management, discipline, adherence to clear goals and responsible action in all areas.”
The inflation rate in Argentina is one of the highest in the world. To finance the budget deficit, the central bank is constantly printing new money. South America’s second-largest economy suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of much tax revenue. The national currency, the peso, continues to depreciate against the US dollar, and the mountain of debt is constantly growing. Inflation in Argentina has now been further fueled by the global situation such as the war in Ukraine and supply chain disruptions.