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ECONOMY | 14-07-2022 18:11

Inflation in Argentina hit 30-year high ahead of Guzmán's exit

Consumer prices in Argentina rose at the fastest pace in more than three decades in June, with worse expected after the economy minister quit this month. 

Consumer prices in Argentina rose at the fastest pace in more than three decades in June, with worse expected after the economy minister quit this month. 

Prices rose 5.3 percent in June compared to May, slightly less than economists’ forecasts of 5.4 percent. From a year ago, the inflation rate accelerated to 64 percent, according to government data published Thursday. 

Healthcare, utilities and alcoholic beverages led all categories in price increases on a monthly basis.  One measure of “core” inflation, which excludes volatile food prices, rose 5.1 percent from a month earlier.

Major price hikes across Argentina in early July have already eclipsed June’s figures. The abrupt exit of former economy minister Martín Guzmán on July 2, which further exposed the government’s internal divide, triggered overnight price increases by shops, suppliers and supermarkets. 

Although July’s data remains volatile, many economists already forecast prices rising over seven percent on a monthly basis, which would be the highest level since 2002. Many analysts now see annual inflation accelerating to 90 percent by the end of this year. ​

by Patrick Gillespie, Bloomberg

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