Prices continue to rise in Argentina, but inflation is slowing down

According to the Institute of Statistics, in July 2024, the consumer price index in Argentina increased by 4%. Since the beginning of the year, accumulated inflation has reached almost 90% (87%), and year-on-year price growth amounted to 263.4%.

The largest price increases in July were recorded in the catering and hotel business (+6.5%), as well as alcohol and tobacco (+6.1%). Utilities rose in price by 6%, food products – by 3.2%.

Despite high inflation, the government is gradually managing to slow down price growth. The July figure was the lowest since January 2022. However, this is accompanied by a decrease in economic activity – in June, the industrial production index fell by 1.6%.

Argentina remains one of the countries with the highest inflation in the world. In recent years, the price growth has been: 211.4% in 2023, 94.8% in 2022, 50.9% in 2021.

The situation worsened after the election of Javier Miley as president in November 2023. His Government devalued the peso, raising the official dollar exchange rate from 366 to 800 pesos. Miley announced the need for shock economic measures, advocating minimal government intervention in the economy.

The poverty rate in the country increased from 49.5% to 55% in the first quarter of 2024, unemployment increased from 5.7% to 7.7%, and GDP fell by 5.1%.