After easing in the first year of the Corona crisis, inflation in Argentina has picked up sharply again.

The inflation rate in the South American country rose by 14.8 percentage points to 50.9 percent in 2021 compared to the previous year, as the statistics authority (INDEC) announced on Thursday.

Argentina has one of the highest inflation rates in the world.

Despite government freezes on many products and services, inflation in 2021 was the second-highest in 30 years.

The country is in a severe economic and financial crisis.

Argentina suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of much tax revenue.

The national currency, the peso, continues to depreciate against the US dollar, and the mountain of debt is constantly growing.

The government is currently negotiating a new loan agreement with the International Monetary Fund (IMF).