Argentina announced that inflation in their country during 2022 will reach 95%. This is the highest figure since 1991, said the Index National Statistics on Thursday. This is also the biggest threat to this Latin American country if not adequately supported.

Latin America's third-largest economy now has the highest inflation rate in the world. December's monthly figure shows 5.1%, which has continued to experience a downward trend for the inflation rate for Argentina since the peak of 7.4% last July.

The annual figure also shows a massive jump of 50.9% in inflation in 2021. For 2023, the government has determined that their inflation target is only 60%; it should not be exaggerated. But Agrnetines felt that it was almost impossible.

Now, the ones who suffer the most are the citizens of Argentina themselves. They have to spend twice as much to get the things they want. And because of this, Argentina's inflation continues at an unspecified deficit.

Argentina's Inflation Rate Hits 5.1% in December, and Cost of Living Doubling in 2022

"You stand in front of the shelves and analyze prices as if you were picking out jewellery," said one of the retired Chemists, Julian Rattano, talking about the significant price increases.

But indeed, prices for daily staples have continued to increase every week and month in the past year. Even a litre of milk will increase by 320 per cent in 2022, cooking oil will increase by 45 per cent, and a kilo of sugar will increase by 490 per cent.

Prices also increased in clothing and footwear, where there was an increase of 120 per cent, and hotels and restaurants experienced an increase of 109 per cent. This is terrible news for the current government because only nine months are left before the general election.

Argentinas has been grappling with an economic crisis for years and has been forced to face double-digit inflation every year in the last 12 years. The causes of inflation also vary, starting from persistent deficit spending, constant devaluation, and war in Ukraine.

Systemic increases also occur in prices, tariffs, salaries, rents, and other central matters. To slow inflation, the government said they would start to freeze the prices of around 2000 products until March, hoping to help the economy.

Wage increases have lagged behind inflation, and millions of Argentines have had difficulty adjusting to the current situation. Now, 47 million population live in poverty, which is already 36.5 per cent of the population, and 2.6 million live in extreme poverty.

Soaring prices have, in large part, been attributable to central bank money printing too. So that the faster pace of inflation since 1991 has caused Argentine citizens to pay double for their needs. And which is not a good condition.

Argentina's Economy Minister Still Confident That Argentina's Economy Will Grow Over 3% in 2023

Argentina is battling one of the highest inflation rates in the world because of soaring prices in all sectors. Salaries are also needed; inflation keeps rising, and this causes difficulties for Argentine citizens. It hits 95% for prices sap wages and savings in all areas of the country.

However, Argentina's economy is believed to increase by 3% in 2023. This is what the economy minister Sergio Massa believes. The budget for 2023 estimates growth of 2% for this year, and referring to the expectation, the inflation rate must come down first.

"What expectations do I have for this year, first to grow more than 3 points, and it would be the third year of consecutive growth," said Massa, who took his chip post in mid-2022 and is still confident about growth for 2023.

Argentina's government is facing an economic crisis marked by an unreasonable inflation rate of almost 100%. This caused the Argentine Peso to lose 50% of its total value. However, the government is still confident it can improve this difficult economic situation.