Shortly after Argentina’s new liberal government came to power, annual inflation rose to 160.9 percent.
In November alone, prices in the South American country hit by a serious economic crisis rose by 12.8 percent, the national statistics agency Indec announced on Wednesday in Buenos Aires. In particular, the costs of healthcare, food and telecommunications rose sharply.
Money as “printed”
Argentina’s inflation rate is one of the highest in the world. To finance the budget deficit, the central bank has continuously printed new money. 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 much tax revenue.
The new ultra-liberal president Javier Milei now wants to get Argentina back on track with a radical austerity program.
The government announced a series of spending cuts on Tuesday and devalued the local currency, the peso, by 50 percent. However, Milei warned that inflation would initially remain high despite the consolidation rate.
Source: Krone
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