Poll shows Argentines expect inflation to hit 50% in next year

Argentines’ expectations for inflation over the next year hit a record, as government price controls have failed to tame elevated food costs.

Prices in Argentina are seen rising 50.2 percent over the next 12 months, according to the University of Torcuato di Tella’s monthly poll of citizens. It’s the highest average reading since the university began its survey in 2006. Median inflation expectations also registered at 50 percent for the third straight month.

Prices rose four percent or more in three of the first four months this year, prompting the government to extend some price controls and temporarily ban beef exports. Alongside concerns of no economic plan, the government’s money printing last year to finance Covid-19 social spending is also fueling expectations for elevated inflation in 2021.

The university’s monthly poll included 1,200 participants in an automated phone survey between May 3 to 13. It was conducted by Argentine firm Poliarquía Consultores and has a 3.5 percent margin of error.