Inflation rate in Argentina exceeded 100 percent

(Patria) - The inflation rate in Argentina is over 100 percent, which happened for the first time since the hyperinflation in this country during the 90s. Argentina went bankrupt in 2001.

The country's statistical agency announced that the inflation rate is 102.5 percent, which means that the prices of goods and services are twice as high compared to the previous year.

Argentina has been facing economic problems for years, which is why most of the population lives in poverty. Authorities are trying to curb price growth by limiting them.

However, there has been a drastic increase in the prices of food and drinks – prices rose by 9.8 percent in February compared to the previous month. Argentine media reported that meat prices increased by almost 20 percent in one month.

The newspaper Ambito reported that unfavorable weather conditions, prolonged heatwaves, and drought have seriously affected livestock and agriculture.

High inflation has been felt in this country for a long time. In September last year, there were protests demanding that price increases be curbed.

The central bank announced that a new banknote denomination – 2,000 pesos (18 KM) – will be issued, which is a response to the price increase.

The government has been trying to mitigate inflation for a long time, but political divisions have endangered the economy. Last summer, three economy ministers were changed in one month.

The International Monetary Fund (IMF) has approved an additional six billion dollars for the country to save its economy. This was the last payment in a 30-month aid program that should ultimately amount to 44 billion dollars, reports the BBC.