President Javier Milei, who has been in office for just over a month, is looking to employ tough austerity measures to bring down inflation, reduce a deep fiscal deficit and rebuild government coffers.
Argentina’s annual inflation rate sped past 211% in December
He only assumed office in December. I think he is a whacko but expecting him to have a major change in inflation immediately is a bit ridiculous, don't you think?
Milei has been pretty open about their policies... Unfortunately Argentina's economy is a dumpster fire and neoliberal asshats have been driving it further into the ground. You can think of Argentina's election of Milei as a hail mary... But an extremely I'll advised one.
When you're desperate even insane radical change can seem better than the status quo.
-cut useless government spending on extremely corrupt practices that permeate all public spending in the country to save money
-reduce spending as the previous economy ministry/presidential candidate left the country reserves in ruins spending 15 thousand millions USD in only 6 months just to try to buy the campaign and still lost.
-rebuild the country's monetary reserves by auditing spend.
Sadly, as economies crash, it takes years, if not decades to repair the damage. Quick fixes or radical changes often just make the problem worse.
It's one of the reasons why Greece is starting to improve after so long in the shit. Their workforce switched to other, stable industries, and due to a mixture of COVID and the global economy dropping, they found themselves finding some semblance of normality.
All economies are different, but Argentina will need to strip away the bullshit, and focus on building something that'll last, with the resources they have. Sadly (and probably rightly so), telling people that the formative years of their lives will be full of unemployment, crushing debt, and no savings to take them into retirement while their kids may have a better outcome isn't a vote winner
and even if it was, the next election could undo absolutely everything.
All Major economic newsletters consultants predicted extremely high values for December, like iprofesional, they were aiming for December inflation number to be 50%. El crónista, 35 % and up. Many banks going from BBVA to Santander, 40% and up.
Having 25.5% is actually amazingly good results with the car wreck the guy got.
We were actually expecting a higher number and milei has been on the office for aprox a month. Shit is going to get really serious in the incoming months
BUENOS AIRES — Argentina’s annual inflation rate sped past 211% in December, official data showed on Thursday, hitting the highest level since the early 1990s as new libertarian President Javier Milei seeks to head off hyperinflation with tough austerity measures.
“We’ve had to eliminate things that made life a little brighter,” said retiree Susana Barrio, 79, adding she no could longer afford to invite her friends for asado barbecues, long a key part of Argentine social life.
While high inflation has dogged Argentina for years, the rate of price increases is now at the highest level since the start of the 1990s, when the country was emerging from a period of hyperinflation, with food prices climbing particularly fast.
President Javier Milei, a political outsider who rode to power on the back of voter anger at the worsening economic situation, is looking to employ tough austerity measures to bring down inflation, reduce a deep fiscal deficit and rebuild government coffers.
“Nothing is cheap,” said Graciela Bravo, a 65-year-old retiree, who said she now carefully counted how many potatoes she bought.
Alejandro Grossi, 49, a lawyer, said he was wearily used to rising prices after years of inflation.
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