Annual inflation in Argentina jumped to 124,4 percent

Argentina's State Bureau of Statistics, Indec, announced a little more than a month before the presidential elections, that the already high inflation in the country has increased further.

In August, the inflation rate increased by 12,4 percent on a monthly basis, and 124,4 percent on an annual basis, the German news agency dpa summarized the report.

The inflation rate in the second largest economy of South America, which is facing a severe financial and economic crisis, is one of the highest in the world, reports SEEbiz.

In order to cover the budget deficit, the central bank is constantly printing fresh money.

Analysts of the Argentine central bank are not optimistic about the future either. Thus, in the latest monthly report on market expectations, the inflation growth forecast for this year has worsened, so it is now expected that inflation in the country will rise to 169,3 percent by the end of the year.

If these forecasts come true, Argentina will greatly exceed the record inflation from the end of last year, when it was 94,8 percent.

The rise in inflation is linked to a decision by Argentina's central bank, which last month, in response to the surprise victory of far-right libertarian Javier Mileo in the primary election, sharply devalued the national currency, the Argentine peso, by 22 percent.

In the presidential election, which will be held on October 22, Milei will face Economy Minister Sergio Massa of the Peronist left government camp and former Interior Minister Patricia Bullrich of the conservative opposition coalition.

The current president, Alberto Fernandez, will not run for a new term. Argentina's State Bureau of Statistics, Indec, announced a little more than a month before the presidential elections, that the already high inflation in the country has increased further.

In August, the inflation rate increased by 12,4 percent on a monthly basis, and 124,4 percent on an annual basis, the German news agency dpa summarized the report.

The inflation rate in the second largest economy of South America, which is facing a severe financial and economic crisis, is one of the highest in the world, reports SEEbiz.

In order to cover the budget deficit, the central bank is constantly printing fresh money.

Analysts of the Argentine central bank are not optimistic about the future either. Thus, in the latest monthly report on market expectations, the inflation growth forecast for this year has worsened, so it is now expected that inflation in the country will rise to 169,3 percent by the end of the year.

If these forecasts come true, Argentina will greatly exceed the record inflation from the end of last year, when it was 94,8 percent.

The rise in inflation is linked to a decision by Argentina's central bank, which last month, in response to the surprise victory of far-right libertarian Javier Mileo in the primary election, sharply devalued the national currency, the Argentine peso, by 22 percent.

In the presidential election, which will be held on October 22, Milei will face Economy Minister Sergio Massa of the Peronist left government camp and former Interior Minister Patricia Bullrich of the conservative opposition coalition.