Argentina's annual rate of inflation reached 94.8% in December, the highest since 1991.

(Associated Press file photo)

[Financial Channel/Comprehensive Report] According to official data released on Thursday (12th), Argentina’s annual inflation rate approached 95% in December, a record high in more than 30 years, and prices have almost doubled from a year ago, further weakening consumption dwindling purchasing power of consumers.

"Reuters" reported that according to data from the Argentine National Statistics Institute (INDEC), consumer prices increased by 5.1% month-on-month and 94.8% year-on-year in December. This is the fastest price increase in more than 30 years since 1991.

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Argentina is battling the world's highest inflation rate, with soaring prices hampering economic growth and forcing stores to constantly update price tags.

Griselda Melle, a self-employed worker, said that there is not enough money, insufficient wages and rising inflation. Since the beginning of this year, Argentina has increased the prices of bus fares, clothing and food.

In a recent interview, Argentina's Economy Minister Sergio Massa predicted inflation would not exceed 5 percent in December and said monthly growth should drop to around 3 percent by April.

Many economists expect monthly inflation to remain in line with December's gains, but factors other than Argentina's recession or government-imposed price ceilings continue to pose heightened risks.

Isaias Marini, an economist at the consulting firm Econviews, pointed out that the scarcity of a strong currency is one of the reasons, and the shortage of the dollar may turn into a further rise in the dollar in the parallel market, leading to higher inflation.

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