Argentina to reach record inflation of 138%, according to JP Morgan

The financial entity foresees price increases and recession throughout 2023 for the South American nation.

The bank JP Morgan Chase & Co forecasted that Argentina will reach 138% inflation. This would be the highest record since the hyperinflation of 1990, when it exceeded 200%.

According to the financial institution's forecasts, monthly inflation would be 6.2% between March and June, rising to 7.0% in the second half of the year. These figures would occur in a context of a 1.7% recession, as reported by Bloomberg Online from the report.

The last record had been broken in February, with a year-on-year increase of 102.5%. Since then, the South American country has joined Venezuela, Syria and Lebanon in the "three-digit club", i.e. countries whose inflation exceeds 100%, according to the specialized economic website Iprofessional.

Just two weeks ago, JP Morgan had published another forecast in which it expected year-on-year inflation of 110%. But the latest interest rate hike by the Central Bank of Argentina and the drought led them to modify the figures,  Iprofessional reported.

Both the recession and inflation figures could be reduced in the last quarter of this year due to the expectations of a change of government with presidential elections to replace that of  Alberto Fernández taking place in October 2023.  

Rising prices may be one of the key issues in these elections, as it is the main concern of Argentines, according to Ipsos' December 2022 What Worries The World report. Specifically, 65% of the population named it as their main concern, making it the nation where it has the greatest weight.