Argentina posts 3.5% inflation in October and accumulates 41.8% in 2021

RIO DE JANEIRO, BRAZIL – The 12-month increase in the cost of living stood at 52.1%, a figure that once again confirms that the South American country is experiencing one of the world’s highest inflation rates.

The cost of living is soaring again despite the fact that the government has implemented a price freeze on some 1,000 products through partial and temporary agreements with companies, in an attempt to contain inflationary pressure.

The index was released 4 days before the mid-term legislative elections for Congress, in which the ruling party, an alliance of center-left sectors with the center-right Peronist party, is lagging behind in the polls against a coalition of right-wing parties with others of a social-democratic slant.

Virtually in line with the official figures, the Central Bank’s latest survey of expectations, based on reports from the 42 largest banks, consulting firms and research institutes, showed a projected inflation rate of around 50% for 2021.

The items with the greatest weight in the increase of consumer prices in October were Health (+4.7%) and Clothing and footwear (+5.1%).

The Argentine economy has been emerging from a deep recession since 2018, with a growth expectation of 8.3%, according to the monetary authority’s market survey, after a 9.9% collapse in 2020 under the impact of the coronavirus pandemic.