As markets, malls and factories deserted during lockdowns slowly reopened, the pent up demand and restricted supply triggered a surge in prices globally. The inflation only became worse, with European countries and the US also bearing the brunt of the Russia-Ukraine war.
As rising interests rates meant to control prices are causing banks to shut down, Argentina has been hit by inflation above 100 per cent.
What does this indicate?
For context, the desperate situation in Pakistan is a result of 31 per cent inflation, while it had hit 70 per cent in Sri Lanka during the crisis last year.
Prices in Argentina have doubled for a large number of consumer products since 2022, and this is the first time that inflation has hit such levels since hyperinflation of the 90s.
The current jump above 100 per cent is caused by a 6 per cent monthly rise, as Argentina has been blaming with an economic crisis and poverty for years.
Global inflation and climate change dealing multiple blows
But Argentina isn't the worst hit, with Venezuela hitting 158 per cent inflation as people struggle to buy food, Lebanon at 143 per cent despite a drop and Zimbabwe's inflation rising to 285 per cent.
Argentina's inflation is also aggravated by an unprecedented drought and lowest rainfall in 35 years, hitting agricultural produce in the country battered by a heat wave.
The food and drink industry has seen a price rise of almost 10 per cent, despite the government placing price caps to control inflation.
Economic policy is all over the place because of a split within the government, and $6 billion received as part of a $44 billion IMF bailout plan hasn't prevented the decline.
