Argentina’s annual inflation soars to 211.4%, the highest in the world

Argentina’s annual inflation soared to 211.4% in 2023, the highest rate in 32 years and highest in the world, surpassing Venezuela, according to figures released Thursday by the government’s INDEC statistics agency.

The data reflects the strong impact of a series of shock measures, including a 50% devaluation of the nation’s currency, implemented by right-wing President Javier Milei in hopes of eventually bringing the country’s roaring inflation under control.

The annual inflation compared with about 95% in 2022. The country’s monthly inflation stood at 25.5% in December, up from 12.8% in November, but slightly below the 30% the government had forecast.

Milei had said in an interview with a Buenos Aires radio station before the figures were released that if the monthly inflation rate came in below the forecast, that would be an accomplishment.

“If the number is closer to 25%, it means that the success was tremendous,” Milei said.

In his inauguration speech, Milei announced a painful adjustment plan aimed at staving off hyperinflation and warned that the measures would initially have a “negative impact on the level of activity, employment, real wages, and the number of poor and indigent people.” It is estimated that around 40% of the population live in poverty.

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