Analysts who participated in a monthly survey by the central bank of Argentina predicted that inflation on an annual basis will reach 149% in 2023, an increased percentage compared to what they estimated in the previous one (126%), announced yesterday by the institution.

In May, analysts estimated that prices rose 9%. Inflation in April was 8.4%, according to the country’s national statistics institute.

Argentina’s economy, under pressure from a historic drought compounded by an ongoing currency crisis, is expected to shrink by 3 percent this year, according to the same survey.

Analysts predict that the peso, whose official exchange rate against the dollar stands at 245:1, will close the year falling further, to 408.68:1 against the dollar, and in 2024 to 917.5:1.

Soaring prices and dwindling foreign reserves are making things difficult for Argentina’s center-left government ahead of elections in October.

The survey of the central credit institution of the Latin American country was conducted on a sample of 38 experts from May 29 to 31.