Argentina recorded an annual inflation rate of 78.5% in August, the highest in 30 years

Argentina recorded an annual inflation rate of 78.5 percent in August, the highest in 30 years. This is according to data released Wednesday by the National Institute of Statistics and Censuses (INDEC).

The South American country recorded a 7 percent increase in prices in the eighth month, 0.4 percent lower than in July, the highest level of inflation in the last two decades.

So far this year, prices for essential goods and services have risen 56.4 percent, according to INDEC.

Clothing and footwear (109 percent), restaurants and hotels (97.5 percent), and food (80 percent) have been hit the hardest by inflation.

There were also significant differences in health (74.6 percent), leisure and culture (72.1 percent), transportation (71 percent), and education (65.8 percent).

This year, the highest price increases are in clothing (71.9 percent), restaurants and hotels (63.9 percent), food (58.8 percent), home appliances and maintenance (58.7 percent), education (55.6 percent), and health (55.3 percent), according to data from the state agency.

Over the past 12 months, prices for goods in Argentina have increased by 81.4 percent, while prices for services have increased by 70.7 percent.

Given the high inflation in Argentina, the Central Bank of Argentina (BCRA) is pursuing a policy of monthly increases in the key interest rate, which currently stands at 69.5 percent.

The monetary authority reiterated that prices accelerated last July against a backdrop of “financial volatility at the local level, which hurt inflation expectations.”