Argentina in economic collapse as annual inflation hits 113%
Annual inflation in Argentina is at 113 per cent, its highest in more than 30 years. It has pushed 40 per cent of the population into poverty as soaring prices outstrip wages.
The crisis escalated last week when the central bank raised interest rates to 118 per cent from 97 per cent to halt a sell-off in government bonds and the Argentine peso, which hit a record low against the dollar.
Inflation forced officials to devalue the peso by 18 per cent on Monday, which some economists expect to fuel inflation further, possibly sending it to 150 per cent.
The latest crash was sparked when Milei, a self-described ‘anarcho-capitalist’ and Donald Trump admirer, won the first round in the presidential elections.