The Argentine Statistics Agency says that monthly inflation has accelerated at its fastest rate in seven months, with consumer prices 3.7% more than the previous month, mainly as a result of the increase in food prices.
Buenos Aires, Argentina – Monthly inflation in Argentina accelerated in March at its fastest pace in seven months, the official statistics agency of the country reported Friday, with consumer prices 3.7% more than the month previously as a result of the increase in food prices.
The steep increase, compared to an inflation rate of 2.4% for February, surprised financial analysts and worried Argentines who have been increasingly concerned that the progress of President Javier Milei in the reduction of price increases could be stagnant. The last time inflation increased so much monthly was in August 2024, when prices increased 4.2%.
Inflation numbers come at a critical situation for the second largest economy in South America. Earl this week, the The International Monetary Fund announced a new loan of $ 20 billion according to Argentina. The IMF Executive Board is expected to vote on the program later on Friday.
While Milei considers that the IMF agreement is crucial for its efforts to stabilize the long economy with problems from Argentina, the VAGU agreement has still spread the nerves among merchants who expect Argentina to have to impose a new monetary and foreign exchange policy as a condition to receive cash. But even more devaluing the peso, now linked to the US dollar, runs the risk of capital flight and even even higher inflation.
Milei came to power in December 2023 with the commitment to get Argentina out of its inflationary spiral throughout the year.
