Life in Argentina is more expensive than it has been in the last 30 years. The Economics Minister is trying to find solutions – in a country where money is just gushing out of printing presses.
In the course of the serious economic and financial crisis in Argentina, the inflation rate in the South American country rose to 94.8 percent. The inflation rate last year reached its highest level in 30 years, as the statistics authority (INDEC) announced on Thursday. In 2021, the inflation rate in Argentina was still 50.9 percent.
“Our responsibility and our greatest challenge is to bring down inflation, because it is the fever of an ailing economy,” Economy Minister Sergio Massa wrote on Twitter after the figures were released. “This can be achieved through proper budget management, discipline, adherence to clear goals and a responsible approach in all areas.”
Money is being printed like crazy in Argentina
The inflation rate in Argentina is one of the highest in the world. To fund the budget deficit, the central bank is constantly printing fresh money. The second largest economy in South America suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of a lot of tax revenue.
The national currency, the peso, continues to depreciate against the US dollar, and the mountain of debt is constantly growing. Inflation in Argentina was now additionally fueled by the global situation such as the war in Ukraine and the disruptions in the supply chains.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
