According to data published on Thursday by Argentina's INDEC statistics agency, the country's yearly inflation reached a peak of 211.4% in 2023, marking the highest level in 32 years. This alarming increase was observed in Buenos Aires, Argentina.
According to the data, the implementation of a set of drastic measures by President Javier Milei, aiming to curb the rampant inflation in the country, has had a significant impact. These measures included a 50% devaluation of the nation's currency and were carried out amid a right-wing government.
In the year 2022, the annual inflation rate was approximately 95%. However, the monthly inflation rate in the country for December was recorded at 25.5%, which was an increase from 12.8% in November. This was slightly lower than the government's predicted rate of 30%.
In a previous interview with a radio station in Buenos Aires, Milei mentioned that if the monthly inflation rate was lower than expected, it would be considered an achievement. This was said before the release of the figures.
According to Milei, if the figure is nearer to 25%, it indicates a great level of achievement.
During his inauguration speech, Milei declared a difficult adaptation strategy with the goal of preventing hyperinflation. He cautioned that the steps would initially cause a downturn in activity levels, employment, real wages, and increase the number of impoverished individuals.
According to estimates, approximately 40% of the populace resides in poverty.
During the interview, Milei stated that he plans to dollarize the economy once the macroeconomic variables are stable.
According to INDEC, food and non-alcoholic beverages had the most significant impact on the annual inflation rate, with an average rise of 29.7% in December. Other mass consumption items also experienced an increase of approximately 30%, while medications saw an average increase of 40%.
According to the consultancy firm Eco Go, there may be a slight decrease in food prices during the initial days of January. They are predicting that the cost of living will rise by less than 23% for the month, which is a decrease from December's 23% increase.
On Thursday, Milei stated that there is an ongoing rearrangement of relative prices. He predicts that there will be a period of inflation with concerning figures, followed by a decrease in inflation.