The 12.4% rise in inflation in August is related to the outcome of the primary election, in which the Argentine peso plunged 22%.
Argentina’s Consumer Price Index (CPI) was released in August. 124.8% compared to previous year The National Institute of Statistics and Census (Indec) reported this Wednesday.
In the eighth month of this year, consumer prices were 12.4% compared to July This was a significant acceleration compared to the average monthly interest rate of 6.9% until the previous month.
In fact, the monthly volatility index recorded in August was Highest price since February 1991 (27%), 2 months before Argentina adopted it. “Convertibility” system between the peso and the US dollar after the hyperinflation of 1989-1990.
The impact of primaries on inflation in Argentina
This surge is directly related to the sudden 22% depreciation of the Argentine peso on August 14, the day after Argentina’s primaries for the October presidential election.
A sudden devaluation of the official exchange rate immediately increase in the price of the dollar In a parallel market that follows many links within the economy to set prices for all kinds of goods and services.
According to the official report, estate Last month there was a positive change of 13.7% compared to July; service These increased by 9.1%, corresponding to 125.5% and 120.8% respectively compared to the same period last year.
More detailed numbers
Of the increase recorded in August, food and non-alcoholic drinks (15.6%), health (15.3%), housing equipment and maintenance (14.1%).
At first eight months of the year cumulative increase in inflation 80.2% .
Consumer prices rose by a cumulative 94.8% last year, a notable acceleration compared to the 50.9% observed in 2021.
The latest private sector forecasts, collected monthly by the central bank, show that the inflation rate is This year it is 140.7% (annual) However, these forecasts predate the government’s major currency devaluation in mid-August.
