World News: Inflation tsunami hits Argentina – rates rise to 211%

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Foodcom Experts
15.01.2024
World News: Inflation tsunami hits Argentina – rates rise to 211%
Summary
Table of contents
  • Argentina’s annual inflation rate exceeded 211% in December, the highest since the early 1990s, with a monthly rate of 25.5%..
  • President Javier Milei introduced tough austerity measures to control hyperinflation and rebalance the economy, despite potential short-term challenges.
  • This inflation crisis, characterized by rising food prices, is worse than the recent situation in Venezuela and poses major challenges for the Argentine population.

Argentina’s Inflation Skyrockets to Over 211% Annually

According to official data, the annual inflation rate in Argentina rose to over 211% in December, reaching levels not seen since the early 1990s. The rise is due to newly elected liberal President Javier Milei’s attempt to curb hyperinflation through strict austerity measures.

In addition to the annual figures, Argentina recorded a monthly inflation rate of 25.5%, slightly below forecasts. This increase follows a sharp devaluation of the peso currency after Milei’s government took office on December 10, promising to fight inflation. Despite these efforts, the country’s inflation rate has now surpassed that of its regional counterpart Venezuela, previously known as an inflation outlier in Latin America.

President Milei’s Austerity Measures Amidst Economic Crisis

President Milei, a political outsider elected on a wave of public frustration with economic conditions, is implementing tough austerity measures to fight inflation, address a significant budget deficit and reorganize state finances. However, Milei warns that this process will take time and that the situation could worsen before there is any sign of improvement.

The current inflation in Argentina is the worst since the early 1990s, a period characterized by hyperinflation. Food prices in particular are rising rapidly, further exacerbating the economic plight of the population.

While Argentina is coping with this economic challenge, the measures proposed by President Milei face the complex task of stabilizing the economy and alleviating the burden of rising inflation on citizens.

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