Argentine inflation reaches 45 percent in year to date – Macau Business

Argentinas inflation for 2021 reached 45 percent in November after a monthly increase of 2.5 percent, the Indec statistics institute said on Tuesday.

Cost of living in the South American country has increased by 51 percent year on year, one of the largest spikes in the world.

The central bank expects inflation to reach 51 percent by the end of 2021.

Speaking to Congress on Monday, Economy Minister Martin Guzman said a three-month price freeze agreement with businesses on 1,400 products would continue into 2022.

He added the main aim for next year would be to contain inflation to 33 percent.

President Alberto Fernandezs government announced this week that inflation control was one of the main points of negotiation with the International Monetary Fund, as Argentina looks to renegotiate a $44 billion loan agreed under his predecessor Mauricio Macri.

The economy ministry expects growth to reach 10 percent for 2021 and four percent in 2022, having fallen 9.9 percent in 2020, largely due to the coronavirus pandemic.

Argentina has been in recession since 2018, but the pandemic worsened its economic crisis.

The economic challenges have hit Fernandezs government hard and last month his Frente de Todos (Everyones Front) coalition lost control of Congress in midterm legislative elections.

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Argentine inflation reaches 45 percent in year to date - Macau Business