Argen, Annual Expected Inflation Rate 126%... Peso Ignored Amid Currency Value Decline and Severity

Argentina, suffering from high exchange rates due to foreign currency shortages and record inflation, is expected to see an annual inflation rate of 126% this year.

On the 6th (local time), Argentine media reported that the Central Bank of Argentina forecasted an annual expected inflation rate of 126.4% for this year through the Market Expectations Survey Report (REM), which is published monthly. This represents a significant upward revision of 16.4% compared to last month's report.

The inflation rate for the next 12 months, from April this year to April next year, is projected to be even higher at 146.5%.

This report compiles monthly forecasts from a total of 13 economic experts from economic research institutes, consulting firms, and financial companies, as announced by the Central Bank.

Experts also predict that the monthly inflation rate for April, which the National Institute of Statistics and Census (INDEC) of Argentina is scheduled to release on the 12th, will reach at least 7.5%.

As inflation in Argentina soars, the value of the peso is rapidly declining.

In particular, the rapid depreciation of the currency has become so severe that an episode where a robber refused to accept Argentine pesos has been circulating on social media.

Eight months ago, a robbery occurred in the city of Encarnaci?n, located on the border between Argentina and Paraguay. Encarnaci?n borders the Misiones Province of Argentina, and some stores in the border area accept both countries' currencies.

Last August, a robber appeared at a Paraguayan supermarket wielding a weapon and threatened the clerk. When the clerk offered Argentine pesos, the robber refused, saying, "No. I won't take it. What am I supposed to do with Argentine pesos!" Startled, the clerk shouted for help, and the frightened robber fled.

The video recorded inside the store and the clerk's interview spread widely through Latin American media and social media at the time. Since then, it has been known as the "Argentine peso even robbers refuse," highlighting the severe devaluation of the Argentine peso.

[Image source=Yonhap News]

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