Argentina surpasses Venezuela in inflation for the second consecutive month, according to estimates

Inflation in Argentina exceeded that registered in Venezuela in May —as also happened in April—, according to estimates from both countries. In recent months, there has been an acceleration in the Argentine case that is felt in the loss of purchasing power. In the albiceleste nation, most estimates agree that this was around 9%, while in the llanera it was 7.6%.

The Venezuelan Finance Observatory (OVF) estimated that the country governed by the Chavista Nicolás Maduro reached 458%, with a drop compared to the 485% reported in April, in the last 12 months.

According to INDEC, Argentina registered a 104% inflation in March and 110% in Apriland it is estimated that it will remain around 117% year-on-year.

“All of this shows that the applied economic policy has been ineffective in containing the rise in prices, even with the induced retraction of aggregate demand,” the independent body concluded.

Loss of purchasing power due to inflation hits consumption in Argentina

According to a report from the Argentine Confederation of Medium Enterprises (CAME)sales measured at constant prices of small and medium businesses reported an interannual contraction of 2.8% last May, chaining five months of retraction.

In the monthly comparison, businesses also sold 1.2% less than in April. As the CAME observed in its report, the commercial sector “has been feeling more and more the loss of purchasing power of families in the hands of inflation.”

According to the latest official data available, last April the consumer price index in Argentina registered an increase of 8.4% compared to March and 108.8% in interannual terms.

Pending the official data for May, private consultants estimate that costs increased by 8.7% in the fifth month of the year compared to April and 118.9% in year-on-year terms.

With information from EFE

Source-larepublica.pe