Inflation in Argentina at the end of last year was 211.4%, according to data from the country's statistical agency. This is the worst result in more than 30 years.
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In In December, consumer prices rose by 25.5% compared to 12.8% in November. According to International Monetary Fund forecasts cited by the Financial Times, Argentina's economy will shrink by 2.5% in 2024.
Fernando Marull, director of the consulting company FMyA, noted that the purchasing power of Argentines fell by an average of about 10% in December, as wages grew slower than prices. Meanwhile, the results of a regular survey of retailers showed a 13.7% drop in sales in December compared with the same month in 2022, the FT reports.
Marulla forecasts that inflation and economic activity will remain “terrible” through at least January and February. “After that, if Miley’s economic plan is successful, we should start to see an upturn,” he added.
Read: Argentina wants to allow the issuance of 10 banknotes thousand and 20 thousand pesos
At the end of December, La Nacion, with reference to the country's President Javier Miley, announced that the Central Bank of Argentina will issue banknotes, the denomination of which will be increased by 25 times compared to the largest bills in circulation . This decision was made due to the high level of inflation. We are talking about the issue of banknotes in denominations of 20,000 ($24.79 at the rate of the Central Bank of Argentina on December 27) and 50,000 pesos ($61.97).
Recall
Previously, the Ministry of Finance ” wrote that Argentina is trying to reach an agreement with the International Monetary Fund (IMF) to obtain the $3 billion needed to pay off its debt. Meetings with IMF representatives are scheduled for January 2024.
According to analysts, the net reserves of the Central Bank of Argentina remain negative and amount to about $8 billion.