Argentina's annual inflation rate crossed past the 100% threshold in February, the country's statistics agency Indec said on Tuesday. This is the first time it has hit triple figures since a period of hyperinflation in 1991, over three decades ago.

Inflation over 12 months clocked in at 102.5% in the second month of the year, government data showed, with a higher-than-expected 6.6% monthly rise in the Consumer Price Index (CPI), and a 13.1% year-to-date increase.

In Argentina's markets, shops and homes, the impact of spiraling prices is being felt keenly as one of the highest inflation rates in the world threatens basic sustainability. 

The government has tried in vain to tame the rising prices, which dent people's earning power, savings, the country's economic growth and the ruling party's chances of clinging onto power in crunch elections later this year, Reuters reported. 

The International Monetary Fund (IMF) urged Argentina to tackle inflation more effectively to ensure its $44 billion programme with the organisation remains intact.

Severe drought in South America has destroyed crops and hurt agricultural exports, causing "policy setbacks", warns the IMF.

Net foreign currency reserves in the country remained around $4.2 billion in February, as per private analysts.

Price hikes have been linked to an increase in money-printing by central banks and Russia's conflict in Ukraine. In three years, the circulation of funds has surged by four times under Fernandez's governance, as reported by the central bank.

After Zimbabwe, Lebanon, Venezuela and Syria, Argentina has the world's fifth-highest inflation rate, with triple-digit inflation recorded in those four countries last year. 

The Argentine state has instituted a temporary freeze on over 1,700 goods through a price control scheme called Precios Justos or "Fair Prices" until December. However, this has not been sufficient to combat the increasing prices due to severe economic imbalances in the country.

Despite introducing similar price controls earlier in 2021, prices remain high, and consumer sentiment continues to decline.  
 

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