Libertarian policies have led to a record decline in inflation in Argentina
12 December 15:16
In November, Argentina’s monthly inflation rate fell to 2.4%, the lowest in more than four years, according to the National Statistics Agency INDEC. This is significantly lower than the expected level of 2.8% and the previous monthly figure of 2.7%. Annual inflation also fell to 166% from the previous 193%, reports Komersant ukrainskyi reports with reference to Reuters.
Such positive developments are seen as a signal of economic improvement after a severe crisis caused by austerity imposed by President Javier Millais.
Price declines and first signs of stability
The leading drivers of price growth in November included education, rent, utilities, tobacco products, and alcohol. However, prices for food and soft drinks rose the least.
According to textile trader Aram Boyajian, the economy seems to have “hit rock bottom” two months ago.
“My middle and working class clients are gradually regaining their purchasing power,” he said,
– he said.
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Milei’s austerity policy
President Milei has implemented austerity measures to reduce the state budget deficit. This included significant cuts in government spending and a controlled devaluation of the peso.
Minister of Economy Luis Caputo emphasized that the current decline in inflation allows the country to gradually reduce the pace of peso devaluation from 2% to 1% per month.
Despite the positive dynamics, the country remains in a difficult situation: with low foreign exchange reserves, capital constraints and a poverty rate of 50%.
Reaction of the population
Some Argentines are still facing difficulties. Teacher Aida Segot said:
“I don’t know much about inflation, but my salary ends a few days after it is paid.”
Despite this, support for President Milea remains high. Many believe that he should be given more time.
“If we stay the course, everything will be fine,”
– said Dolores Sagasta, a resident of Buenos Aires.
So, Argentina is gradually overcoming the effects of the crisis, but it still needs time to truly recover.
