Argentina's inflation soars to new record of 108.8% in April

By Ovunc Kutlu

ISTANBUL (AA) - Annual consumer inflation in Argentina soared to a new record of 108.8% in April, according to data released Friday by the country's national statistics agency.

The annual gain was an increase from 104.3% in March and 102.5% in February – the highest levels for the South American country since the early 1990s.

The latest figure also came in higher than market estimates of 106.9%.

On a monthly basis, consumer inflation rose 8.4% in April, according to the figures released by state statistics authority INDEC.

That figure also came in higher than the market expectation of 7.5%, while it is a gain from 7.7% in March.

Argentina's central bank on April 27 raised its benchmark interest rate by 1,000 basis points to 91%, which marked the second major rate hike by the bank in a week after it raised its benchmark interest rate by 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 rate hike by the bank since Sept. 15 when it hiked interest rates by a whopping 550 basis points to 75% to fight rising inflation.