The latest data from Argentina’s statistics agency INDEC revealed that in 2023 the Latin American country’s annual inflation surpassed 211%, reaching its highest rate in over 30 years.

Argentina has surpassed Venezuela for the first time in decades, as its inflation-driven increase in prices has elevated it to the top ranks among nations grappling with soaring inflation in South America.

The data highlights the significant effect of a sequence of abrupt actions in that location, including a 50% decrease in the value of the country’s currency and a raise in the primary interest rate to 133%, executed by the recently elected President Javier Milei in an attempt to eventually control the nation’s high inflation. Additionally, the government has allowed price-fixing agreements to expire.

In 2022, the yearly inflation rate increased by over two times compared to the previous year, which was nearly 95%. Additionally, the inflation rate for December, on a monthly basis, reached 25.5%, surpassing the 12.8% observed in November but falling slightly below the government’s projected rate of 30%.

Few days ago, the International Monetary Fund (IMF) authorized the release of $4.7 billion to Argentina as a component of a plan to restructure their debt, even though the country failed to meet targets associated with their $43-billion loan program.

The new government’s drastic measures have had a considerable adverse effect on prices in the nation, especially on food prices.

According to analysts’ reports, in December, Argentines experienced an average decrease of around 10% in their purchasing power due to wages rising at a slower pace compared to prices.

Argentine retailers experienced a decline of 13.7% in sales during December 2022, as indicated by a recent survey conducted by the Federation of Medium-Sized Businesses.

Economists and financial market analysts predict that Argentine inflation and economic activity will continue to be terrible until at least January and February. However, if Milei’s economic plan succeeds, a rebound can be expected thereafter.