Argentina’s annual inflation soared to 211.4% at the end of last year. The country faced the steepest consumer price gain since 1991. On a monthly basis, consumer prices rose by 25.5% in December 2023.
Such a sharp rise in inflation could be attributed to the policy pursued by the head of state. After taking office, Argentine President Javier Milei, known for his libertarian views, signed a decree outlining a number of new economic reforms. He announced sweeping measures to reduce the hand of the state in the country’s economy. In particular, the new president unleashed a decree that would end export limits on most goods. What is more, the Milei administration launched a 54% devaluation of the peso, Argentina’s national currency.
Earlier, Milei called the situation in Argentina an inflationary "catastrophe" and warned of very tough six months ahead for the country. Inflation is expected to remain high in the first half of the year, with economic growth slowing down due to slashed public spending. Later on, however, Milei is confident that these measures will help lower the fiscal deficit and bring inflation down.
