As Argentinian Inflation Topped Hundred Percent, Peso Accelerated Downfall

According to the latest data, inflation in Argentina exceeded 100% for the first time since the end of hyperinflation cycle in the early 1990s.

More precisely, inflation hit 102.5% in February, meaning the prices of many consumer goods have more than doubled since 2022. Such a dramatic increase could partly be due to a sharp hike in the price of meat, which rose by almost 20% in the space of a month. Adverse weather conditions, a prolonged heatwave and a drought seriously impacted livestock and crops.

Argentina has been in economic downturn for many years. The government is trying to curb price increases by capping the prices of food and other products.

In December, the IMF approved another $6 bn of bailout tranche for the troubled Latam country. It was the latest payout for Argentina in a 30-month program that is expected to reach a total of $44 billion.

Meanwhile, on 10 Mar 2023 Fitch Ratings had affirmed Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDRs) at 'CCC-' as Argentinian peso, USDARS, jumped from 200/$ to current 202/$ on the news. The currency on YTD basis depreciated against the USD by 13.5%, outpacing another deeply troubled currency, Turkish lira.