Prices rose by 7.3% in January in Buenos Aires, according to the city government’s statistics and census board. Inter-annual inflation in the capital hit 99.4%, with values soaring above 100% in several economic sectors.

The figure represents a 1.5% increase compared with December, when monthly inflation for the city was 5.8%.

According to the report, the figure reflected price increases in transport, information and communication, restaurants and hotels, food and beverages, and housing.

Housing rose by 6% last month, mainly due to rent increases. This also represents a 102% rise compared with January 2022. Restaurant and hotel prices rose by 11.6%, driven largely by higher food costs and accommodation fees driven by the tourist season. Year-on-year inflation for the sector is running at 118.5%.

Food and beverage prices increased by 6.8% during the month and 103.9% during the year. Clothing prices rose by just 2.3% in January, but were up by 112.4% year-on-year.

Business consulting firm Ecolatina published its own January inflation index for the Greater Buenos Aires area, which it put at 6.4% for the month and 102% for the year. The company’s report echoes the city’s assessment that there was a “price acceleration” during the beginning of the year. Ecolatina believes that 2023 inflation will be in the “90-100% zone” due to the drought and despite price agreements and the moderation of the crawling peg (the official devaluation of the peso compared to the US dollar).

Analysts surveyed by the Central Bank voiced similar views – on average, they foresee consumer prices rising by an annual rate of 97.6% in 2023. Last year, inflation reached 94.8%, the highest figure in over three decades.

Meanwhile, the government is implementing a series of measures to reduce monetary emission and the fiscal deficit, fostering a positive interest rate, reserve accumulation and price agreements to better “coordinate the expectations” of economic agents. Through this program, Economy Minister Sergio Massa is hoping for a slow but steady reduction of inflation that would see the monthly rate drop below 4% by April.

If the national inflation rate for January, due to be published next week, is similar to the figures for the city of Buenos Aires, Massa will have his work cut out if he is to reach his April goal.