Argentina's Inflation Rises 211.4 Percent

2024-01-18

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1
  • Argentina's yearly inflation increased to 211.4 percent in 2023, numbers released recently by the government show.
    • 2
  • It is the highest rate in 32 years.
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  • The data from the National Institute of Statistics and Censuses, called INDEC, shows the effects of strong and difficult economic measures.
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  • They include a 50 percent devaluation of the country's money by President Javier Milei in hopes of bringing the country's high inflation under control.
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  • The yearly inflation number was much higher than the 95 percent number in 2022.
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  • For December, the monthly inflation rate was at 25.5 percent, up from 12.8 percent in November.
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  • But it is under the 30 percent the government had predicted.
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  • Milei said before the numbers were released that if the monthly inflation rate came in below the prediction, that would be a success.
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  • "If the number is closer to 25 percent, it means that the success was tremendous," Milei said.
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  • In his inauguration speech, Milei announced a painful plan meant to avoid extremely high inflation.
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  • He warned that the measures would at first have harmful effects "... on the level of activity, employment, real wages, and the number of poor and indigent people."
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  • It is estimated that around 40 percent of the country's population lives in poverty.
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  • Food and non-alcoholic drinks, which have the largest effect on the yearly inflation rate, saw an average increase of 29.7 percent in December, INDEC found.
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  • Other products used by the general population rose by around 30 percent, while medications had an average increase of 40 percent.
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  • Graciela Bravo, a 65-year-old retiree, said, "Nothing is cheap."
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  • She told the Reuters news agency that she used to buy potatoes by the kilo.
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  • "Now I get three potatoes or four potatoes so they don't spoil," she said.
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  • Alejandro Grossi, a 49-year-old lawyer, said he was used to rising prices after years of inflation.
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  • He said, "It's like we're used to it, it's already something so natural here: inflation and changing prices."
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  • I'm Gregory Stachel.