Argentina’s monthly inflation rate was 12.8% in November, according to the National Institute for Statistics and Census (INDEC, for its Spanish acronym). The figure is 4.5 points higher than in October and the highest monthly figure since February 1991. However, a higher jump in prices is expected for January and February after the government devalued the peso by 54% on Tuesday.

November’s inflation rate is the last one that will fully reflect Alberto Fernández’s presidency, as twenty December days will have been presided over by Javier Milei.

Year-on-year inflation hit 160.9%, and the accumulated inflation for the first eleven months of 2023 was 148.2%, according to Wednesday’s report.

The economic sector that saw the biggest increase was health, with a 15.9% monthly jump mainly driven by medication and prepaid medicine plans. The second was the food and non-alcoholic beverages category (with increases in bottled water, soft drinks, juices, fruits, vegetables, tubers, and legumes). Overall, food and drink prices increased 15.7% in November.

According to JP Morgan, Argentina’s inflation rate will become substantially higher in the following months after Tuesday’s 54% devaluation of the peso. In a Wednesday report, the firm predicted a 60% inflation rate for December and January, claiming it would decelerate in the second quarter of 2024. 

“Activity is to suffer a sudden stop on the circuit break stemming from the impact of the front-loaded correction of relative prices on disposable income, as well as the fiscal adjustment,” the report said.

Social leader Juan Grabois said on X (formerly Twitter) that the devaluation’s pass-through would imply an 80% rise in the living cost over the coming 90 days.

“Let it be clear, those who were middle middle class, have just been thrown into poverty with just a click, creating the illusion that there was no other possible way.”