Argentina’s yearly inflation tops 60 percent

Argentina’s yearly inflation tops 60 percent
Photo: Je-Arte Productions/Shutterstock

Inflation in Argentina is on its way to setting a new annual record after Indec, the country’s national statistics institute, reported that consumer prices rose by 5.1 percent in May. 

Consumer prices rose by 60.7 percent over the past 12 months, Indec said, while forecasters expect inflation to reach 70 percent on average by year’s end, according to a Central Bank survey.

That figure would be the highest since Argentina’s last hyperinflation crisis in 1990, after which the country pegged the Argentine Peso to the U.S. Dollar in hopes of creating stability.

That peg broke after the 2001 financial crisis, and inflation has been rising steadily ever since, amid uncontrolled fiscal deficits and a debt crisis that is forcing the country to print money to pay its debts.