Even as inflation decreased marginally in monthly terms, annual inflation in Argentina hit a three-decade high of 254% in January, according to official figures released Wednesday.

Newly seated President Javier Milei’s “shock treatment” policies, such as depreciating the national currency by 50% compared to the US dollar and raising the key interest rate to 133%, have been implemented already in an effort to stabilize the faltering economy, however inflation is surging as a result.

Addressing the inflation numbers in public for the first time on La Nacion Mas television station, Milei said, “If one takes the number alone, isolated, it is horrifying. And indeed, it is, but you have to look at where we were and what the trend was.” The President predicted that regardless, inflation would be under control in two years.

In the meantime, the nation’s monthly inflation rate fell from 25.5% in December to 20.6% in January. December saw 211% annual inflation. The research states that while the cost of goods and services increased by 44.4% in January, transport prices in Argentina increased by 26.3%.

Without his new policies, Milei claimed that Argentina’s “economic activity would have fallen much more.” The president went on to state, “We are focusing on taking care of the most vulnerable class.”

Having long declared himself an anarcho-capitalist, Milei, who assumed office in December 2023, has cautioned that it may take some time to see the benefits of his policy and that things may worsen before they improve.

The third-largest economy in Latin America is currently experiencing a serious economic crisis as a result of decades of poor financial management.