The new ultra-liberal President Milei wants to get the country back on track with a radical austerity program. But the inflation rate has recently risen to its highest level since the hyperinflation of 1991.
The annual inflation rate in Argentina has risen to 254.2 percent. In January, prices in the South American country hit by a severe economic crisis rose by 20.6 percent, as the national statistics agency Indec announced on Wednesday in Buenos Aires. In particular, the costs of personal care products, transport and communication rose sharply. This means that the year 2024 began in Argentina with the highest inflation rate since the hyperinflation of 1991.
Inflation in Argentina is one of the highest in the world. South America’s second largest economy 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 new ultra-liberal President Javier Milei wants to get Argentina back on track with a radical austerity program. The government sharply devalued the local currency, the peso, and announced cuts to subsidies on gas, water, electricity and public transport, which is likely to further fuel prices.
Source: Stern
