Madness in Argentina: the annual inflation rate is expected to climb to 95%

The annual inflation rate in Argentina will climb to 95% this year, according to a monthly survey published by the country’s central bank yesterday (Friday). The current inflation rate stands at 70%, a 20-year high. The South American country is finding it difficult to overcome the ongoing economic crisis that has befallen it and stems from the rising prices, about a month ago raised the interest rate by 9.5% to almost 70%.

The current forecast for the increase in consumer prices is 4.8% higher than last month’s forecast. According to forecasts, next year the annual inflation rate in the country is expected to reach 84% and drop to 63% in 2024.

According to a news published in Reuters, the economists who participated in the survey also raised the economic growth forecast for Argentina this year to 3.6%, a small increase of 0.2% compared to the survey last month.

Argentina is the third largest economy in Latin America, and it has been suffering for a long time from high inflation, which was aggravated by the war in Ukraine.

The participants in the Central Bank’s survey estimate that the official foreign exchange rate in the country will climb in December to 170.11 pesos to the dollar compared to 140 pesos today, even though traders in Argentina are increasingly turning to the black market for foreign exchange conversions.