Argentina’s interannual inflation reaches three digits

Argentina’s interannual inflation reaches three digits

Argentina’s Consumer Price Index (CPI) for February of 2023 was reported to stand at 6.6%, according to the National Institute of Statistics and Census (Indec), which resulted in interannual inflation of 102.5%. In this scenario, Economy Ministry sources quoted by Buenos Aires media admitted the possibility of not meeting the 60% annual target outlined in the 2023 Budget.

So far in 2023, the CPI accumulates an increase of 13.1%. February’s 6.6% was the third-highest monthly price increase in recent times since the 7% recorded in August 2022 and 7.4% in July.

The highest increase in the month was Food and Non-Alcoholic Beverages (9.8%), mainly due to an increase in the price of meat and by-products, in addition to milk, dairy products, and eggs, due basically to the ongoing drought and the increase in animal feed costs.

Only two regions registered inflation lower than the national average: the Pampas (6.4 %) and Patagonia (5.8 %), while Greater Buenos Aires and Cuyo recorded 6.7%, the Northwest 7.3 %, and the Northeast 7.8 %.

High increases were also recorded in Communications (7.8%), Restaurants and hotels (7.5%), due to the seasonal adjustments, Health Insurance 5.3%, Fuel and Transport 4.9%, Utilities 4.8%, Clothing and Footwear 3.9%, and Education 3.2%.

Economy Ministry sources also said they hoped the effects of the so-called Fair Prices program were to have an impact on the monthly inflation starting in March.