Argentina’s inflation for April 2022 is set at 6% – the worst annual data in 30 years
Argentina’s National Institute of Statistics and Census (Indec) announced on Thursday that inflation for the month of April 2022 had reached 6% for a total of 58% in the last 12 months, which is proved to be the highest figure in the country in 30 years.
Year-on-year inflation thus surpassed the record it had reached in May 2019 under then-President Mauricio Macri (57.3%), even though the international scenario at the time was not pushing prices up. on the rise as the war between Russia and Ukraine is currently doing. In any case, this past year has been the worst in terms of price dynamics since the hyperinflation of the late 1980s. Interannual inflation in March was already at 55.1%.
In April, categories that grew above average were apparel (9.9%), restaurants and hotels (7.3%), healthcare (6.4%) and food and beverages 5.9%.
With this variation – and thanks to monthly peaks such as 6.7% in September 2018, 5.4% the following month and 4.7% in March 2019 – year-on-year inflation reached 57.3%.
In January 1992, year-on-year inflation reached 76%. It was not until April 1991 that the anti-inflationary convertibility plan was implemented.
According to the latest Relevamiento de Expectativas de Mercado (REM) report from the Central Bank, an average inflation of 65.1% is expected by December.
According to the Minister of Economy, Martìn Guzmán, a new batch of measures agreed with the International Monetary Fund (IMF) is in preparation, which will result in a reduction in inflationary pressures thanks to the reduction of the primary deficit and monetary issues coupled to the accumulation of reserves.
After the release of the Consumer Price Index (CPI) for April, the Central Bank of Argentina (BCRA) raises the base interest rate from 47% to 48%. Thus, the nominal annual rate (NAR) for a retail 30-day fixed term deposit will be 48% up to AR$10 million, which represents a return of 60.1% of the effective annual rate (EAR). ), still below inflation projections.
“The BCRA will continue to monitor price developments and assess the reversal of the monetary policy bias as soon as a decreasing path of the inflation rate is consolidated,” it was announced.
This is the fifth interest rate hike since the start of the year, after starting at 38%.