A sign announces the price of flour at 789 pesos in a supermarket, as Argentina is battling with an annual inflation heading towards 200%, in Buenos Aires, Argentina January 8, 2024. REUTERS/Agustin Marcarian
Argentina’s annual inflation rate surged beyond 211% in December, reaching its highest level since the early 1990s, according to official data released on Thursday. This unprecedented inflationary spike comes as the new libertarian President, Javier Milei, aims to counter hyperinflation through stringent austerity measures.
In addition to the annual inflation figure, Argentina experienced a monthly inflation rate of 25.5% in December, slightly below initial forecasts. This surge followed a significant devaluation of the peso currency after Milei assumed office on December 10, pledging to tackle the soaring inflation problem.
With this latest inflation reading, Argentina surpassed its regional counterpart Venezuela, historically recognized for its inflationary challenges. In 2023, Venezuela’s inflation is estimated to have cooled to around 193%, marking a decrease from years of uncontrollable price increases.
The impact of soaring inflation is palpable in the daily lives of Argentines. Susana Barrio, a 79-year-old retiree, lamented the necessity to cut back on social activities like inviting friends for traditional barbecues due to financial constraints. This economic hardship has left many Argentines struggling to maintain their previous quality of life.
Although high inflation has plagued Argentina for years, the current rate of price increases is the highest since the early 1990s, a period when the country emerged from hyperinflation. President Javier Milei, an outsider who gained popularity amid voter dissatisfaction with the economic situation, aims to address inflation, reduce fiscal deficits, and replenish government reserves through stringent austerity measures.
However, Milei cautions that the process will take time, and there may be further challenges before improvements materialize. With two-fifths of the population already living in poverty, many Argentines are facing additional financial hardships.
Graciela Bravo, a 65-year-old retiree, emphasized the struggle to afford basic necessities in the current economic climate. She carefully monitors her purchases, buying fewer items to avoid spoilage. Alejandro Grossi, a 49-year-old lawyer, expressed weariness with rising prices, noting that adapting to inflation has become a natural part of life in Argentina.
As the nation grapples with the economic fallout, citizens are adjusting their lifestyles and spending habits in response to the challenging inflationary environment.
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