In Argentina, a South American country where inflation continues to be rampant, the consumer price index rose 8% in August compared to the same month last year, reinforcing the view that price surges will accelerate due to political uncertainty.
Argentina's Statistical Office announced on September 9 that the consumer price index in August increased by 13.8% compared to the same month of the previous year.
This is the seventh consecutive month that inflation has exceeded 124% per annum, up from 4% in July.
For this reason, Argentina's central bank has been trying to contain inflation by raising its policy interest rate by 100% to 7%.
On the other hand, in Argentina, the political situation is becoming increasingly uncertain ahead of the presidential election in October, as seen in the primary election for the presidential election held in August, where an independent candidate calling for the abolition of the central bank came out on top.
The record-breaking drought, combined with a significant decline in the production of agricultural products such as soybeans and corn that support the Argentine economy, has strengthened the view that inflation will accelerate further.