Shocking News: Argentina’s Inflation Skyrockets to 117.8% in 2024!

Inflation in Argentina for the year 2024 has reached a staggering 117.8%, according to recent data released by the National Institute of Statistics and Census (Indec). This figure, while high, represents a slight decrease from previous months, with December recording the lowest monthly rate since July 2020, at 2.7%.

Here are some key points from the report:

• The division with the highest increase in December was Housing, water, electricity, gas, and other fuels, with a 5.3% rise. This was primarily driven by increases in Housing rent and related expenses, as well as Electricity, Gas, and other utilities.
• Communication followed closely behind, with a 5% increase due to adjustments in Telephone and internet services.
• Food and non-alcoholic beverages saw a 2.2% increase in five regions, with Meat and derivatives, Bread, cereals, milk, other dairy products, and eggs contributing to this rise.
• The lowest variations were in Clothing and footwear (1.6%) and Household equipment and maintenance (0.9%).
• Regulated CPI increased by 3.4% while Core CPI increased by 3.2%, and Seasonal CPI fell by 1.4%.
• The government expected the inflation rate to be below 3%, but the actual figure of 2.7% in December confirmed a continued downward trend.

In light of these economic fluctuations, Argentine travelers have found neighboring Brazil to be a more affordable destination. According to @ComunidadFloripa on Instagram, the cost of an asado for six people in Florianópolis is significantly lower compared to Argentina, showcasing the economic disparities between the two countries.

To address the evolving economic landscape, Argentina’s Central Bank (BCRA) has announced plans to adjust the monthly devaluation rate of the Argentine peso against the US dollar from 2% to 1% starting in February. This move is in response to the observed inflationary trajectory and aims to stabilize the economy in the face of rising prices and increased economic activity.

As the country navigates these changes, the exchange rate will continue to serve as a crucial factor in managing inflation expectations and ensuring economic stability moving forward.