'Meanwhile, the Central Bank of Argentina hiked interest rates by 550 basis points in September, raising the cost of borrowing to a staggering 75%. However, because price rises are outpacing that, many people still fear their money will be devalued if they leave it in a savings account.''People in Argentina are battling inflation of almost 100%, meaning that the average basket of shopping now costs nearly twice as much as it did a year ago.
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Argentina's Consumer Price Index hit an annual rate of 98.8% in January, government figures published Tuesday showed — a rough doubling of prices over the past 12 months. Economists had expected a reading of 98.3%, according to data from Refinitiv.
The country has the highest inflation of any member of the G-20 group of nations. Prices have skyrocketed to their highest rate since the period between 1975 and 1990, when inflation hit a staggering 300% year-on-year.
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The longrunning crisis has sparked widespread protests..
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Meanwhile, the Central Bank of Argentina hiked interest rates by 550 basis points in September, raising the cost of borrowing to a staggering 75%. However, because price rises are outpacing that, many people still fear their money will be devalued if they leave it in a savings account.
But forecasters don't believe any of those methods are working, and many say that prices are likely to double again over the next 12 months.
"Inflation remains hot and widespread, and current policy measures — low real interest rates, price controls and an overvalued currency — aren't working to tame price pressures," Bloomberg economist Adriana Dupita said.
"We expect inflation to hover around 100% through most of the year," she added.'
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Inflation hits a staggering 99% in Argentina even after spiraling food prices sparked street protests, February 15, 2023
Context '..inflationary forces have been unleashed..'(Global Stagflation) - '..inflation tends toward a cycle of unpredictability and destabilizing volatility that can extend for years and even decades.'(Global Stagflation) - '..Food Inflation Still Stalking the World'(Global Stagflation)(Cost-of-living crisis) - '..high input costs as their top concern..'(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'