Argentina’s inflation rises 3.7 per cent in June

BUENOS AIRES, Argentina – Argentina said Tuesday that consumer prices rose 3.7 per cent in June, bringing the 12-month nationwide inflation rate to 29.5 per cent, one of the world’s highest.

Consumer prices had reached 2.1 per cent in the previous month, and 26.3 per cent in the 12 months through May. The galloping inflation rate published by the official statistics agency comes after a sharp devaluation and a recent run on Argentina’s currency.

The peso has tumbled about 30 per cent so far this year. That led Argentina’s government to seek a $50 billion financing deal with the International Monetary fund earlier this year aimed at strengthening the struggling economy as it continues to fight double-digit inflation.

The top price increases in June were in transportation, which rose 5.9 per cent and food and non-alcoholic beverages, up 5.2 per cent. Recent hikes to utility rates that are part of a series of belt-tightening measures also fueled inflation.

Analysts estimate that consumer prices could rise up to 30 per cent this year and forecast lower economic growth, which could affect President Mauricio Macri’s chances of winning a re-election in he decides to run during next year’s election.