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Rising Argentine inflation ends 2021 over 50%

AFP

Argentine inflation continued to rise in 2021, ending the year at more than 50 percent, the state statistics institute said on Thursday,

It was grim news for the South American country, given cumulative inflation in 2020 — a year when the economy was almost paralyzed by the Covid-19 pandemic — was just 36 percent.

The largest price increases in 2021 were in hotels and restaurants (65.4 percent), transport (57.6) and food (50.3).

“During 2021, the government tried to anchor inflation and to do so basically used the regulation of the price of utility rates and the exchange rate,” Hernan Fletcher of the Argentine Center of Economic Policy, told AFP.

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“Although it certainly was not a success, without this, inflation would have been higher.”

Since 2019, Argentina has imposed ever stricter currency exchange controls, meaning citizens can only withdraw $200 a month at the official rate.

For 2022, the government predicted in its budget — which was rejected by the opposition-dominated parliament — an inflation of 33 percent.

Opposition figures derided the budget as unrealistic.

According to a Central Bank survey, inflation in 2022 will be 55 percent.

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The news comes with the government embroiled in a tricky renegotiation with the International Monetary Fund (IMF) over the repayment structure of a $44 billion loan agreed in 2018.

Argentina is due to pay back $19 billion to the IMF this year, another $20 billion in 2023 and $4 billion the following year.

Yet analysts estimate that the country has just $4 billion in international reserves.

“A deal with the IMF could improve the economy in terms of expectations, but in terms of inflation I don’t see 2022 being very different to 2021,” said economist Pablo Tigani.

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International

Mexico City prepares for 13 million pilgrims at Basilica of Guadalupe

The Mexico City government is expecting at least 13 million pilgrims to visit the Basilica of Our Lady of Guadalupe for the December 12 celebrations honoring Mexico’s patron saint. To ensure the safety and care of visitors, authorities have launched the “Basilica Operation,” mobilizing more than 105,000 public servants.

Mayor Clara Brugada stated that the operation began on December 5 and will continue until December 14, covering the peak of visits to the basilica, located in the Gustavo A. Madero borough in the north of the city.

Key measures include reinforcement of the Metro public transport system, particularly at stations near the sanctuary, the installation of three helipads for medical emergencies, and the involvement of Civil Protection brigades, health ministry personnel, and public safety officers.

Secretary of Public Security Pablo Vázquez explained that the deployment also includes 255 patrol units and numerous specialized teams to manage crowds, traffic, and emergency situations, aiming to guarantee a secure experience for all pilgrims.

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Central America

Mexico and Guatemala launch joint security operation after Agua Zarca border attack

The Government of Mexico announced on Tuesday that it has strengthened coordination with Guatemala following an armed confrontation in the community of Agua Zarca, in Guatemala’s Huehuetenango department, where a soldier was wounded in an attack attributed to organized-crime groups operating on both sides of the border.

The Secretary of Security and Citizen Protection, Omar García Harfuch, confirmed that Mexico is exchanging information with Guatemalan authorities and that Mexican Army units have been deployed along the border to reinforce surveillance and assist in reconnaissance operations.

The attack, Guatemala’s Defense Ministry stated, reflects the “criminal dynamics” dominating that border region, where different groups compete for drug and arms trafficking routes.

According to Guatemala’s Defense Ministry, the clash left a soldier wounded in the leg after suspected criminals crossed from Mexico and opened fire. The wounded soldier is reportedly in stable condition. Authorities also seized high-caliber weapons, explosives, tactical gear and drones, which were handed over for forensic analysis.

Mexican Defense Secretary General Ricardo Trevilla Trejo announced that a coordinated plan of operations will be launched involving both Mexican and Guatemalan forces along the border to counter these criminal networks.

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Harfuch emphasized that the violence is not isolated but symptomatic of the ongoing struggle between criminal organizations for territorial control, and reiterated Mexico’s commitment to bilateral security cooperation and its intention to strengthen institutional presence in vulnerable border zones.

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International

Zelensky meets Pope Leo XIV as review of U.S. peace plan continues

Ukrainian President Volodymyr Zelensky met on Tuesday with Pope Leo XIV in Italy, after pledging to deliver a response to the United States regarding the proposed peace plan aimed at ending the war with Russia.

The meeting with the pontiff took place at the papal residence in Castel Gandolfo, near Rome, where Leo XIV “reiterated the need to continue dialogue and renewed his urgent hope that the ongoing diplomatic initiatives may lead to a just and lasting peace,” the Vatican said in a statement.

His visit to Italy follows Monday’s meetings with European leaders in London and Brussels, amid pressure from U.S. President Donald Trump to agree to a peace plan that Zelensky said he is still reviewing.

According to Zelensky, the plan presented by Washington—originally consisting of 28 points—was reduced to 20 after discussions between Ukrainian and U.S. representatives over the weekend. “We are going to work on those 20 points. We are not completely satisfied with the proposals from our partners,” Zelensky said during an online press conference on Monday.

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