In Argentina, the risk of hyperinflation will increase in the next six months, as the weak and divided government in Buenos Aires struggles to enact policies that bring prices down and restore public trust in the country's currency. Argentina's macroeconomic environment has deteriorated significantly in recent months. In March, interannual inflation reached 104% (from 102% in February and 98.8% in January), while monthly inflation reached 7.7% (from 6.6% in February and 6% in January). According to early reports, both the interannual and the monthly inflation rates in the country will rise further when the April data is released in early May. Separately, the gap between Argentina's official exchange rate and the unofficial rate also continues to broaden. On April 25, the unofficial exchange rate reached 500 pesos per U.S. dollar, up from roughly 390 pesos per U.S. dollar in late March (by contrast, the official exchange rate is 222 pesos...
