Argentina inflation surges to decades-high in March, sapping spending power

A customer looks at bottles of alcohol in a market as inflation in Argentina hits its highest level in years, causing food prices to spiral, in Buenos Aires, Argentina April 12, 2022. REUTERS/Mariana Nedelcu

BUENOS AIRES (Reuters) -Argentina's monthly inflation rate soared to 6.7% in March, the government said on Wednesday, far above forecasts and the highest level in two decades as spiraling food and fuel prices dent the value of salaries and savings.

The INDEC statistics agency said the annual inflation rate hit 55.1% in the month, above a Reuters analyst poll of 53.8%. Analysts had also predicted a monthly rise of 5.8%, though Economy Minister Martin Guzman had warned it would top 6%.