Monthly inflation in Argentina slows, climbs annually to new record

ISTANBUL

Consumer inflation in Argentina slowed in May on a monthly basis, but posted a new record annually, according to data released Wednesday by the national statistics agency.

On a monthly basis, consumer inflation rose 7.8% in May, according to the figures released by state statistics authority INDEC.

The figure eased from 8.4% in April -- the first softening in six months.

Annually, however, consumer inflation jumped 114.2%, compared to the same month last year, marking a record for the country.

The annual gain was an increase from 108.8% in April, 104.3% in March and 102.5% in February -- the highest levels since the early 1990s.

On May 15, Argentina's central bank raised its benchmark interest rate by 600 basis points to 97%, following a rate hike of 1,000 basis points to 91% on April 27 and 300 basis points to 81% on April 20.

Banco Central de la República Argentina on March 16 increased its benchmark interest rate by 300 basis points to 78%, which was the first hike by the bank since Sept. 15 when it hiked rates by a whopping 550 basis points to 75% to fight rising inflation.