Economy

peppertree

(22,850 posts) Sat Jan 14, 2023, 09:44 PM Jan 2023

Argentina sees prices almost doubling last year

Argentina saw prices almost double last year as the country's annual inflation rate hit its highest level in more than 30 years.

Official figures show consumer prices jumped by 94.8% in the 12 months to the end of December.

It marks the South American country's fastest annual pace of inflation since October 1991 - when the country was emerging from a bout of hyperinflation.

Last year Argentina's Central Bank raised its main rate of interest from 38%, to 75%, as it tries to rein in the soaring cost of living.

On a monthly basis, Argentina's monthly inflation rate stood at 5.1% in December.

The monthly figure marks a small victory for the government of President Alberto Fernández as the country's official inflation rate remains below the peak of 7.4% in July.

At: https://www.bbc.com/news/business-64258488

"Fair Price" placards festoon a supermarket in La Plata, Argentina, the day of the program's introduction by Economy Minister Sergio Massa on December 1.

The program - a price truce agreed on with leading retailers on 1,900 popular items - helped keep inflation for all of 2022 at just under 100%.

The 94.8% rate was, however, the highest in 31 years - and polls show that re-election chances for President Alberto Fernández, despite a vigorous recovery from the inherited "Macrisis" as well as the pandemic, are suffering as a result.

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Argentina sees prices almost doubling last year (Original Post) peppertree Jan 2023 OP

5.1% inflation in December - ughh, annualized that's 81.6% progree Jan 2023 #1

In Argentina, it's often a matter of "it can always be worse" peppertree Jan 2023 #2

progree

(11,493 posts)

1. 5.1% inflation in December - ughh, annualized that's 81.6%

Reply to peppertree (Original post)

Sat Jan 14, 2023, 10:17 PM

Jan 2023

Official figures show consumer prices jumped by 94.8% in the 12 months to the end of December.

... On a monthly basis, Argentina's monthly inflation rate stood at 5.1% in December.

1.051^12 - 1 = 0.816 = 81.6%. So that's not all that much below the 94.8% year over year.

peppertree

(22,850 posts)

2. In Argentina, it's often a matter of "it can always be worse"

Reply to progree (Reply #1)

Sat Jan 14, 2023, 10:40 PM

Jan 2023

As late as November, inflation was widely expected to reach 100% by year's end - but the price truce (and, frankly, sheer market forces) kept it to "just" 95%.

And wages, you might ask? They're rising at 82/83% - which if unchanged by December, will mean a 6 or 7% real wage slide.

This, after collapsing by 22% under Trump's pal Macri (2015-19), and only marking time under Fernández's first two years.

As you probably know, Argentines aren't new to any of this: prices have risen by an average 65% a year since democracy returned in 1983 - and 55% annually in the previous 39 years.

Real wages have fallen by about 25% since '83 - and yet, auto sales have more than doubled. This shows the widening gap between the haves and have-nots - as does the proliferation of gated communities since then.

Indeed - for those of us who remember Buenos Aires in the early '80s, I can tell you it was a lot more egalitarian.

But then, that's become something of a worldwide problem.

Thank you for your time and input, progree. Much appreciated.

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