1 of 1 Javier Milei waves during an event in Buenos Aires on December 12, 2023 Photo: JUAN MABROMATA / AFP Javier Milei waves during an event in Buenos Aires on December 12, 2023 Photo: JUAN MABROMATA / AFP
A Inflation in Argentina reached a rate of 254.2% in 12 months, according to the official statistics institute Indec. This is one of the largest interannual fluctuations in the world. In January, the indicator slowed to 20.6%, below the 25.5% in December.
January's consumer price index was in line with previous estimates by the government of ultraliberal Javier Milei of around 20%, against the backdrop of the “stagflation” economic stagnation with inflation that the president himself announced shortly after taking office.
After the 50% devaluation of the peso in December, the liberalization of almost all prices in the economy and the first adjustments in transport and public service tariffs, monthly inflation remains close to the historic record set in February 1991 (27%).
Sectors with the largest increases in January include goods and services (44.4%), transportation (26.3%), communications (25.1%) and food and nonalcoholic beverages (20.4%).
“With inflation at this level, there is little reason to celebrate, especially since salaries rose by less than 9% in December and closer to 15% in January, but also below inflation,” economist Hernán Letcher summarized to AFP.
The government began its term in December with inflation at 25.5%, bringing inflation to 211.4% last year.
“With what we do on tax, currency and exchange rate issues, we reduce the inflation rate.” [inflação] Wholesale is already collapsing,” Milei said during her recent trip to Israel and Italy.
According to Indec, in the country a kilo of bread cost 1,214 pesos (1.3 dollars, 6.46 reais), a liter of milk 842 pesos (0.95 US dollars, 4.72 R$) and a kilo of sugar 1,180 pesos (1, 47 R$). $7.30), sunflower oil (1.5 liters) 2,630 pesos (US$2.98, R$14.8) and ground beef from 3,469 pesos (US$3.93, R$19.53).
“Some things I ate before, I don't eat now, like cheese and meat,” Elsa González, a 74yearold pensioner, told AFP.
On average, the healthcare sector recorded a monthly increase of 20.55%. “As for daily medications, I now have to take half or less of the pill than before because of the price,” said Ramón Zamudio, 70, a janitor in a building in central Buenos Aires.
Economy Minister Luis Caputo predicted that inflation would be lower in February and March. “It’s already decreasing,” he said.
Milei suffers a major defeat after failing to approve legislative changes in Argentina
During its two months in office, the government launched an ambitious deregulation of the economy to minimize the role of the state, reduce inflation and achieve stability.
Milei issued a megadecree with changes to norms and laws, including a labor chapter, the application of which was temporarily suspended by the courts.
At the same time, he passed a “busing law” with more than 600 articles, which failed after intense debates with allies and opponents in Congress.
Caputo said he would take further executive action to achieve the “zero deficit” target pledged to the International Monetary Fund (IMF) this year by launching a $44 billion (218.75 billion) lending program R$) reactivate.
The CGT, the country's main trade union federation, organized a 12hour general strike in January and announced that it would demand an 85% increase in the minimum wage, currently 158,000 pesos (US$179.5, R$892).
This Wednesday, Indec set the basic food basket at 285,561 pesos (US$324.5, R$1,613) and the total basic food basket at 596,823 pesos (US$674.7, R$3,354).