Argentina Inflation Hits 79%!

(Bloomberg) — Argentine annual inflation surged to 78.5% in August, almost certainly cementing another central bank interest rate hike as early as this week.Most Read from BloombergThat was faster than the 78.2% median estimate from analysts, and marks a new three-decade high, according to government data published Wednesday. Consumer prices rose 7% from a month earlier.Clothing prices rose 109% from a year earlier, while food costs increased by 80%. Worse may be to come, since the government raised regulated utility prices in September, which will have a knock on effect in several sectors.What Bloomberg Economics Says“Monetary tightening won’t suffice to cool price gains in the near term. Energy subsidy cuts and pass-through from faster peso depreciation will push inflation near 90% by year-end.”–Adriana Dupita, Latin America economistClick here for full reportCentral bank officials are widely expected to raise borrowing costs this week. The monetary authority has started hiking more aggressively since Economy Minister Sergio Massa took over in early Augu …