Argentina’s central bank hiked its benchmark interest rate to a world-record 60% after the peso plummeted against the U.S. dollar this week. The peso’s plunge further exacerbated the country’s precarious economic situation and investor concern over the nation’s ability to pay its debts.
Consumer prices reached a six-year high of 2.9% in the one-year period ending June, while the more closely followed core rate (which excludes food and energy) gained 2.3% in the annual period. For the month, consumer prices edged up by 0.1% as higher automobile and medical costs were mitigated by declining energy prices. Moderate inflation pressures could further extend both price indexes, supporting the Federal Reserve’s (Fed) current pace of gradual rate hikes. Producer prices rose by 0.3% for the month and by 3.4% for the year, primarily due to tariff-related acceleration of steel and metal prices.