The inflation in January it closed at 3.9%, which generated great pressure for February, in the midst of a very conflictive economic outlook, not only due to the agreement being negotiated with the IMF, but also due to the Russian invasion of Ukraine.
Below this line, the rate of prices is only increasing, which will make the inflation in February it will be close to 4% again, even above this value, since the volatility in the international markets affects the nation.
Thus, the Government has not been able to face the inflationdespite the strategies implemented, because only meat increased its value by 3.7% during February.
This was announced by the Chamber of the Industry of Commerce of Meat and Derivatives of the Argentine Republic (CICCRA) in its latest report, where it was also referenced that the price of chicken increased by 3.6%.
The Chamber also reported that exports had a year-on-year drop of 24.6% in January, this, since China, the main importer, reduced its demand for this 2022.
Under this scenario, Argentina will once again accumulate a inflation historical, because according to experts, the country is very close to having hyperinflation, a phenomenon that the Government expects will improve with the agreement with the IMF.
Argentina’s inflation surpassed Venezuela’s
Although Venezuela is known worldwide for its hyperinflation, in the last 7 months the rate of prices has dropped significantly, The Central Bank of Venezuela (BCV) published that the inflation in February it reached 2.9%.
This figure is well below what was projected for Argentina for the second month of the year, since an accumulated figure for the first two months of the year is expected to be close to 8%.
The key will undoubtedly be in what happens in the future, because if the inflation does not yield and remains close to 4%, the fiscal deficit will increase and it will be increasingly difficult for the country to overcome the economic crisis it faces.
