Argentina's annual inflation rate reached 211.4% in December, the highest level since the early 1990s, according to official data released this Thursday, January 11. The data, which exceeds Venezuela's inflation figure, is known at a time when the country's new president, the far-right economist Javier Milei, is promoting drastic economic measures against hyperinflation and the devaluation of the peso.
First modification:
3 min
The consumer price index (CPI) in Argentina stood at 211.4% year-on-year in December, after growing 25.5% compared to November, according to data released this Thursday, January 11, by the National Institute of Statistics and Censuses (Indec).
In the last month of 2023, consumer prices grew 25.5% compared to Novemberevidencing an acceleration with respect to the monthly rate of 12.8% that had been registered in November.
The data is recorded after the strong devaluation of the peso last month, when the far-right economist Javier Milei assumed the Presidency, promising to control inflation.
With this year-on-year inflation rate, Argentina surpasses Venezuela, which for a long time was an outlier in Latin America and where inflation cooled to an estimated 193% in 2023, after years of out-of-control price increases.
While high inflation has dogged Argentina for years, the rate of price increases is now at the highest level since the early 1990s, when the country was emerging from a period of hyperinflation, with commodity prices foods rising particularly quickly.
President Javier Milei, a political outsider who came to power thanks to voter anger over the worsening economic situation, has announced tough austerity measures to reduce inflation, reduce the deep fiscal deficit and rebuild the government's coffers.
But Milei, who has been in office for a month, has warned that it will take time and that things could get worse before they get better.
The president indicated, in fact, that between this December and next February monthly inflation rates of between 20 and 40% could be recorded, but he assured that he will seek, with the 'shock' fiscal plan announced at the beginning of his mandate, to avoid a hyperinflation of 15,000% annually.
Argentines tighten their belts more
Faced with this perspective, many Argentines are tightening their belts even more and two-fifths are already in poverty.
“Nothing is cheap,” said Graciela Bravo, a 65-year-old retiree, who said she now carefully counted how many potatoes she bought.
“Before you bought by the kilo, now I have to buy three potatoes or four potatoes so they don't spoil.”
“We have had to eliminate things that made life a little brighter,” said Susana Barrio, 79, who added that she could no longer afford to invite her friends to barbecues, a key part of Argentine social life for a long time.
“That joy it gave me to invite my friends to a barbecue, which is typical here, now that is impossible.”
Alejandro Grossi, a 49-year-old lawyer, said he was tired of getting used to rising prices after years of inflation.
“I buy less things than I would like, you adapt,” he said. “It's as if we were used to it, here it is already something very natural: inflation and price changes.” ($1 = 814.9000 Argentine pesos)
High data on prices of goods and services
According to the official report, goods had a positive variation of 29.5% last month compared to November, while services rose 14.1%, data that amounts to 228.7% and 165.5%. %, respectively, in the interannual comparison.
Among the increases registered in December, those in various goods and services (32.7%), health (32.6%) and transportation (31.7%) stand out, as a result of the increases in medicines and fees of private medicine companies.
The price of food and non-alcoholic beverages grew by 29.7% compared to November and 251.3% in interannual terms.
Consumer prices had accumulated an increase of 94.8% in 2022, with a notable acceleration compared to the 50.9% verified in 2021.
With Reuters and EFE
#Argentina39s #interannual #inflation #reached #December #surpassing #Venezuela
