Inflation in January was 6%, as expected by most private advisory firms. According to INDEC, the interannual index accumulates 98.8%, which positions Argentina as one of the countries with the highest inflation in the world. Only 4 manage to overcome the three-digit barrier: Venezuela (305.7%), Zimbabwe (244%), Lebanon (142%) and Sudan (102%).
As a result of the Covid 19 pandemic and the Russian invasion of Ukraine (which made the price of energy and food more expensive), there have been inflationary hotspots in the United States, on the European continent and also in the region. In many of them, they have taken aggressive actions to cool prices, such as raising rates and adjusting spending.
As a counterpart, Argentina belongs to the group of countries with out-of-control prices. It is advisable to review the numbers and the circumstances that each of them goes through.
Nicolás Maduro’s Venezuela continues to lead the world rankings. After three years of hyperinflation, prices in the Caribbean country were falling after the decision to shelve the bolivar, the local currency, for allow hard currencies to be used in routine purchases and spendingespecially the dollar.
This is favored by the sending of remittances from people who have emigrated in search of a better destination. Venezuelan inflation, however, has slowed significantly: in 2021 it had reached a peak of 660%by far the tallest in the region and in the world.
Behind Venezuela is Zimbabwe, a country that has been going through a deep crisis for decades ended 2022 with 285%. The African nation is also famous for having one of the most devalued currencies in many years, including the 10 trillion dollar note from Zimbabwe.
In third place in this particular ranking is Lebanon, which was already facing a serious economic and political crisis even before the Covid 19 pandemic. In 2022, it recorded inflation of 189.4%. For 4 years this Middle Eastern country has also been suffering from a shortage of food and basic services, such as electricity. Political struggles prevent him from implementing the structural reforms that the International Monetary Fund is asking to deliver a rescue package.
Sudan is the fourth most inflationary country in the world. He joined the club a year after suffering a military coup, which caused its economy to collapse. Up to October last year, Sudan has accumulated annualized inflation of 102% (just above Argentina’s record). And, moreover, it faces a general shortage of products, amid tax hikes and economic adjustments.
Source: Clarin
