# Argentina's 300% inflation and propped-up peso spawn Paraguay border ghost town | Reuters

> Argentina's crawling-peg policy has kept the peso depreciating at only 2% per month while monthly inflation runs at 10-20%. Accumulated inflation of 65% through April has made Argentine goods far more expensive in dollar terms. Analysts argue the peso is overvalued and call for another devaluation.

- Date: 2024-05-27 · published 2024-05-27T12:00:00.000Z
- Category: macro · region Argentina · magnitude low
- Page: https://feedsoft.ai/events/30546-argentina-s-300-inflation-and-propped-up-peso-spawn-paraguay-border-ghost-town
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

An overvalued peso makes Argentine exports less competitive, which can support international prices for Argentine grain and meal as buyers look to other origins. A future devaluation would reverse that and could pressure world prices.

## Sources

- reuters.com: https://www.reuters.com/world/americas/argentinas-300-inflation-propped-up-peso-spawn-paraguay-border-ghost-town-2024-05-27/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.