Inflation in Argentina was 54 percent in 2019, before falling to 42 percent in 2020. Despite Argentina's fluctuating economic instability over the twentieth century, the largest factor in its current economic status is the legacy of poor fiscal discipline left by the economic depression from 1998 to 2002. Although data is not available from 2014 to 2016, Argentina's inflation rate has been among the highest in the world for the past five years.

What causes inflation?

Inflation is a rise in price levels for all goods. Major causes of inflation include an increase in money supply, low central bank interest rates, and expectation of inflation. In a country such as Argentina, the expectation can be one of the biggest obstacles. People expect inflation to be high and demand increasing wages, and firms continue raising prices because they expect the costs of inputs to increase. Banks follow suit, charging high interest rates on fixed deposits.

Effects of inflation

Inflation negatively affects savers. 100 Argentinian pesos in 2018 was worth just under 75 pesos in 2019, after adjusting for the 34 percent inflation rate. Similarly, frequently changing prices has its own inherent cost, called “menu cost” after the price of printing new menus. Inflation will also have a positive effect on national debt when that debt is denominated in Argentinian pesos, because the pesos will be cheaper when the loan matures. However, the majority of Argentina’s debts are in foreign currency, which means that inflation will make these debts larger in peso terms.

Inflation Rate in Argentina decreased to 39.40 percent in June from 43.50 percent in May of 2025. This dataset provides the latest reported value for - Argentina Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The Consumer Price Index gauges the price changes in a basket of goods and services in a defined time period. In Argentina, the CPI in April 2024 was 289 percent higher than the one registered the same month of the previous year, with this figure being the largest monthly inflation rate since, at least, the beginning of 2018. The Argentinian inflation rate has been experiencing a steep increase from December 2020 onwards, when the decreasing trend witnessed since December 2019 came to an end. Long history of inflation in Latin America High inflation rates are nothing new in Latin America. In 2023, the region's inflation rate was 14.41 percent, while the global average was much lower at 6.78 percent. Nonetheless, the main drivers of this are Venezuela and Argentina, both being in the upper table of countries with the highest inflation rates in the world. During the last few years, Venezuela entered a period with five-digits inflation rates, having to issue a new currency and implementing new policies to control price increases.

A history of hyperinflation During the last couple of years, inflation has been a constant among the main problems the Argentine society faces. The country returned to a three-digit inflation rate with former president Alberto Fernández, and the constant price increases took a toll on households across the board. Nevertheless, the problem is far from a recent one or the worst it's ever been, in 1989 and 1990, the inflation rate was over 2,000 percent, reaching for the status of hyperinflation. Commonly, hyperinflation is defined as price increases with over 50 percent per month.

The Consumer Price Index in Argentina increased 1.60 percent in June of 2025 over the previous month. This dataset provides the latest reported value for - Argentina Inflation Rate MoM - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The Consumer Price Index gauges the price changes in a basket of goods and services in a defined time period. During August 2024, the product category with the highest Consumer Price Index (CPI) increase compared with the previous month in Argentina was household, water, electricity, gas and other fuels with a ***** percent increase. Followed by education with a *** percent increase. Nonetheless, when compared with the previous year, communications registered the highest price increase with over *** percent year-over-year. The expectation of inflation Despite Argentina’s efforts to reduce inflation, the country ranks in the top three Latin American countries with the highest rate, only with a lower figure than Venezuela and Suriname. The situation is not a recent one, the inflation rate has been reaching double digits every year since 2012, reaching over ** percent in 2019, making the constant rising prices nothing out of the ordinary for Argentinian families. The expectation of inflation is one of the main causes of inflation with low central bank interest-rates and increases in the money supply, which helps to explain the chronic inflation of the country. Both firms and people expect inflation in their lives, workers demand increasing wages to coop with inflation, while companies increase prices of goods and services because they expect production costs to grow, creating a vicious circle in the economy. Inflation and poverty Inflation negatively affects consumers and savers alike. For the latter, 100 Argentinian pesos in 2020 was worth just under ** pesos in 2021, after adjusting for the ***** percent inflation rate. For the consumers, rising prices of the basic products increase the vulnerability of the population. In January 2023, the value of the basic food basket, which establishes the extreme poverty line, stood at ****** pesos, more than ten times higher than during the same month in 2018. Between the first half of 2018 and the first half of 2022, the share of households under the poverty line increased by over * percentage points reaching **** percent.

The USD/ARS exchange rate rose to 1,279.0165 on July 15, 2025, up 0.02% from the previous session. Over the past month, the Argentinean Peso has weakened 8.16%, and is down by 38.61% over the last 12 months. Argentinean Peso - values, historical data, forecasts and news - updated on July of 2025.

ABSTRACT As the one Latin American emerging market country that has steadfastly adhered to a fixed exchange rate for more than a decade, this article examines the economic and political trade-offs that peso-dollar parity has entailed. In economic terms, the currency board has clearly fostered macroeconomic stability and fiscal prudence. Yet, the maintenance of a fixed currency regime in the context of volatile capital flows has also contributed to the steady appreciation of the peso over time. This trend, along with certain political deals (slow labor market reform and generous government transfers to the provinces) struck at the outset of the reform program, has greatly hampered the productivity and dynamism of the Argentine economy. The country’s weak competitive position has been exacerbated by the Brazilian devaluation of 1999, and the lesson since then has been how difficult it is to craft a political coalition to tackle the formidable microeconomic tasks now at hand.

Money Supply M2 in Argentina decreased to 45944645.50 ARS Million in April from 69678887.20 ARS Million in March of 2025. This dataset provides - Argentina Money Supply M2 - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Argentina AR: Inflation:(GDP) Gross Domestic ProductDeflator data was reported at 135.369 % in 2023. This records an increase from the previous number of 69.876 % for 2022. Argentina AR: Inflation:(GDP) Gross Domestic ProductDeflator data is updated yearly, averaging 28.872 % from Dec 1961 (Median) to 2023, with 63 observations. The data reached an all-time high of 3,046.091 % in 1989 and a record low of -3.561 % in 1993. Argentina AR: Inflation:(GDP) Gross Domestic ProductDeflator data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Argentina – Table AR.World Bank.WDI: Inflation. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.;World Bank national accounts data, and OECD National Accounts data files.;Median;

Argentina AR: GDP: USD: Gross National Income per Capita: Atlas Method data was reported at 12,890.000 USD in 2023. This records an increase from the previous number of 11,820.000 USD for 2022. Argentina AR: GDP: USD: Gross National Income per Capita: Atlas Method data is updated yearly, averaging 3,935.000 USD from Dec 1964 (Median) to 2023, with 60 observations. The data reached an all-time high of 13,070.000 USD in 2017 and a record low of 1,120.000 USD in 1964. Argentina AR: GDP: USD: Gross National Income per Capita: Atlas Method data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Argentina – Table AR.World Bank.WDI: Gross Domestic Product: Nominal. GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the midyear population. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. GNI, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank. This applies a conversion factor that averages the exchange rate for a given year and the two preceding years, adjusted for differences in rates of inflation between the country, and through 2000, the G-5 countries (France, Germany, Japan, the United Kingdom, and the United States). From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States.;World Bank national accounts data, and OECD National Accounts data files.;Weighted average;

ABSTRACT This paper analyses the latest stabilization effort in Argentina, the Cavallo Plan (named after its mentor, Domingo Cavallo). The analytical framework is the tradeable - non tradeable textbook model, also known as the dependent economy model, from the Australian trade literature. The model is extended to include the effect of real wages on aggregate demand, and therefore on activity. A Phillips curve description of inflation is also added. It is shown that, by moving from a floating to a fixed-exchange rate regime, the Argentinian economy attained domestic equilibrium, at the cost of balance of payments equilibrium. The paper shows that the ensuing trade deficit may lead to a classical run on reserves, forcing the return to floating exchange rates. In the process, the economy will go through a complete economic cycle, returning to inflation.

This dataset provides values for INFLATION RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

In 2023 and through 2024, the world saw inflation rates increase amid, among other things, post-COVID-19 effects and the Russia-Ukraine war. Argentina and Turkey were both plagued by hyperinflation, with over *** and ** percent in 2024, respectively. Except for these, Russia had the highest inflation rate, at nearly ***** percent. On the other hand, China had the lowest rate of the countries included here, at *** percent. Argentinian inflation crisis During the *****, Argentina was struck by extreme levels of inflation, which severely impacted the livelihoods of Argentinians. Specifically, the costs of goods have presented numerous challenges to Argentinian consumers. In Argentina, a basic food basket that costs around ****** Argentinian pesos cost over 100,000 by February 2024. Similarly, a basic consumer goods basket that cost around ****** Argentinian pesos in February 2023 rose to over ******* by February 2024. While these rising costs have been challenging for consumers, Argentina’s inflation rate is expected to decrease beginning in 2024 and is estimated to reach ***% by 2029.

British recession Besides the outliers of Argentina and Turkey, the United Kingdom had a comparatively high CPI rate. As of 2024, the British economy has entered a recession, the only G7 country to do so. Just before the general election held in July 2024, British voters indicated that health, mostly the lack of financial support and staff shortages, as well as the economy was the most important issue to them.

countries Currency Argentine peso. name, long name, population (source), population, constitutional form, drives on, head of state authority, Main continent, number of airports, Airports - with paved runways, Airports - with unpaved runways, Area, Birth rate, calling code, Children under the age of 5 years underweight, Current Account Balance, Death rate, Debt - external, Economic aid donor, Electricity consumption, Electricity consumption per capita, Electricity exports, Electricity imports, Electricity production, Exports, GDP - per capita (PPP), GDP (purchasing power parity), GDP real growth rate, Gross national income, Human Development Index, Health expenditures, Heliports, HIV AIDS adult prevalence rate, HIV AIDS deaths, HIV AIDS people living with HIV AIDS, Hospital bed density, capital city, Currency, Imports, Industrial production growth rate, Infant mortality rate, Inflation rate consumer prices, Internet hosts, internet tld, Internet users, Investment (gross fixed), iso 3166 code, ISO CODE, Labor force, Life expectancy at birth, Literacy, Manpower available for military service, Manpower fit for military service, Manpower reaching militarily age annually, is democracy, Market value of publicly traded shares, Maternal mortality rate, Merchant marine, Military expenditures percent of GDP, Natural gas consumption, Natural gas consumption per capita, Natural gas exports, Natural gas imports, Natural gas production, Natural gas proved reserves, Net migration rate, Obesity adult prevalence rate, Oil consumption, Oil consumption per capita, Oil exports, Oil imports, Oil production, Oil proved reserves, Physicians density, Population below poverty line, Population census, Population density, Population estimate, Population growth rate, Public debt, Railways, Reserves of foreign exchange and gold, Roadways, Stock of direct foreign investment abroad, Stock of direct foreign investment at home, Telephones main lines in use, Telephones main lines in use per capita, Telephones mobile cellular, Telephones mobile cellular per capita, Total fertility rate, Unemployment rate, Unemployment, youth ages 15-24, Waterways, valley, helicopter, canyon, artillery, crater, religion, continent, border, Plateau, marsh, Demonym

Argentina - Debt sec, inflation-linked, issued by residents, in all markets at all original maturities denominated in all currencies at nominal value stocks

In January 2025, it was estimated that a Big Mac burger in Argentina would cost an average of 6.95 U.S. dollars. Overall, Argentina ranked with the highest price for a Big Mac in selected Latin American countries. The Big Mac Index in Argentina The Big Mac Index is an indicator that measures an economy's purchasing power. As it is mainly a standardized product, elaborated similarly across many markets, the evolution of its cost can provide insights into variations of real consumption prices in a given country. For instance, the price for a Big Mac in Argentina decreased by almost half from 2018 to 2019. This reflects Argentina's peso devaluation in comparison to the U.S. dollar and other foreign currencies in that period, caused by high inflation rates in the country, among other macroeconomic reasons. McDonald's in Latin America Arcos Dorados Holdings Inc. is McDonald's franchisee in Latin America. The company's name was inspired by McDonald's famous logo, as 'Arcos Dorados' means 'Golden Arches' in Spanish. It manages the brand's operations in Mexico, Central America, the Caribbean, and South America. Arcos Dorados’ revenue averages three billion U.S. dollars per year, making it McDonald's largest franchisee in the world. The company is also publicly listed in the New York Stock Exchange. Based on its market capitalization value, Arcos Dorados' net worth was estimated at around 1.64 billion U.S. dollars in 2023.

The data and programs replicate tables and figures from "From Hyperinflation to Stable Prices: Argentina's Evidence on Menu Cost Models", by Alvarez, Beraja, Gonzalez-Rozada, and Neumeyer. Please see the Readme file for additional details.

The benchmark interest rate in Argentina was last recorded at 29 percent. This dataset provides the latest reported value for - Argentina Money Market Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Argentina - Debt sec, inflation-linked, issued by OFC, in all markets at all original maturities denominated in all currencies at nominal value stocks

The purpose of this article is twofold. The first is to explain the time inconsistencies of the convertibility regime that led to the 2001 crisis. The argument suggests that the credibility requirements for convertibility induced a dynamic of legal, fiscal, financial and external commitments that increased exit costs and time inconsistencies. The second objective is to explain the tensions of the floating regime that replaced convertibility in 2002. We describe the effects of a floating exchange rate on macroeconomic imbalance and the growing tension between competitiveness and inflation.