Global Courant 2023-04-15 03:07:49
One of the highest rates in the world is straining pockets and putting pressure on the government ahead of the October election.
Argentina’s annual inflation rate rose to 104.3 percent in March, the official statistics office said, one of the highest in the world.
Inflation announced Friday for the month came in at 7.7 percent, well above analyst forecasts of 7.1 percent, marking the fastest monthly increase since 2002 and adding pressure to the government, which has been battling angry voters ahead of the elections in October.
“I try to think that one day we will be better off. But the inflation we live with today in Argentina is terrible. It feels like never before,” said Claudia Hernansaez, a publishing executive.
“In my case, I have zero capacity to spare.”
Skyrocketing prices have squeezed wages and purchasing power, pushed poverty to nearly 40 percent and tarnished the popularity of the ruling Peronist coalition as the general election approaches.
The country, a major exporter of the world’s grains, is also grappling with one of the worst droughts in history, which devastated soybean, corn and wheat crops, drained billions from the economy through lost exports and drove up domestic prices even as the war in Ukraine took place. already led to a huge price increase across the board.
“The number we are seeing today represents the worst moment of the war’s impact on international prices and the worst drought in our country’s history,” presidential spokeswoman Gabriela Cerruti wrote on Twitter.
“We know, it hurts us, it concerns us, how this affects everyday life and every family,” she added, saying the government hoped a downward trend in inflation would be “reflected soon” .
Rising prices
For now, every visit to the supermarket is a reminder of the country’s inflationary crisis, the worst since 1991, the end of a period of hyperinflation. Retiree Juan Tartara said prices rose with each weekly visit to the store.
“Sometimes food goes up 10 percent or 15 percent,” he said. “In a year the beef went from about 1,000 pesos ($4.66) or 1,200 pesos ($5.63) to 2,800 pesos ($13.05).”
Inflation is likely to be one of the deciding issues for voters in the October election, where libertarian economist Javier Milei is gaining popularity in the polls with his promises to break the status quo.
President Alberto Fernandez’s approval rating has fallen as inflation rises and is currently hovering just above 20 percent. He has not yet confirmed whether he will seek re-election for a second term.
Paola Lavezzari, also in publishing, said inflation forced her to pull out her wallet and buy cheaper products.
“The first thing you lose is the quality of the product. Because what you used to consume of better quality is now priceless,” she says.
“Things used to be maybe 10 pesos ($0.05) more, but now it’s 100 pesos ($0.50) more. … If you do the monthly shopping, that’s so much. The difference is huge.”
