MercoPress. South Atlantic News Agency

Inflation in Argentina reaches 6% in January

Projections for February and March have a floor of 6%, it was reported

Inflation in Argentina reached 6% in January of 2023, according to a report from the National Institute of Statistics and Census (Indec) released Tuesday, which also showed the interannual consumer price index went up 98.8%. It was the highest monthly rate since 1991 when it reached 84%.

 The highest increases were recorded in Recreation and culture (9%); Housing, water, electricity, and other fuels (8%); and Communication (8%). Meanwhile, Food and non-alcoholic beverages stood at 6.8%.

The rise in food and non-alcoholic beverages was boosted by strong increases in fruits, vegetables, tubers, and legumes, which were combined with also high increases in water and soft drinks, plus an increase in bread and cereals, and meat and byproducts.

Within Recreation and culture, restaurants and hotels went up 6.2%, while housing, water, electricity, and other fuels recorded an 8% increase, largely driven by the rise in utility rates (water and gas). Communications showed a rise of 8%, due to increases in telephone and internet services. The lowest variations were clothing and footwear (2.3%), and Education (1.1%).

Private analysts project inflation for February and March will most likely not be below 6%, it was reported. The problem is the constant depreciation of Argentina's currency, it was explained.

Argentina's annual inflation has been above double digits for more than a decade. In 2018, it reached 47.6%; in 2019, 53.8%; in 2020, 36.1%; in 2021, 50.9%; and in 2022 it shot up to 94.8%.