Inflation in Argentina declines in May for the fifth consecutive month.
Reuters, June 13, BUENOS AIRES – According to official figures released on Thursday, Argentina’s monthly inflation rate in May was the lowest since 2022. It dropped to 4.2% for the fifth consecutive month amidst a strict austerity campaign led by libertarian President Javier Milei.
The month-on-month increase in prices was the lowest for Argentina since the beginning of 2022; it was less than anticipated, rising by 4.9%, and it was down from a peak of nearly 25% in December.
In addition, annual inflation decreased for the first time since the middle of the previous year, levelling off at 276.4% in April after reaching a peak that was still among the highest in the world.
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The skyrocketing expenses of food, electricity, and transportation mean that many Argentines claim they have not yet felt the benefits of slower inflation, and the country’s minimum wage of 234,315 pesos ($260) per month feels inadequate.
Silvia Castro, a 65-year-old retiree, was purchasing groceries at a market on the outskirts of Buenos Aires. “I still don’t understand how inflation can be going down,” she remarked.
to encourage wagers that the benchmark interest rate in Argentina would continue to be lowered by the central bank of the nation.
The rate was reduced by the monetary authority from 133% in December to 40%, which is still a high rate.
Argentina’s leadership has bragged about how well its strict policies to slash spending, concentrate on reserve rebuilding, and lessen central bank money issuance have worked to contain inflation.
Argentina’s bonds and struggling currency rose as markets celebrated the Senate’s overnight passage of a massive reform package that is essential to President Milei’s economic plan on Thursday.
Even still, with the economy stagnating and the rate of poverty rising, Milei’s administration will find it difficult to hold onto support from the electorate.
A 53-year-old businesswoman named Laura Basualdo claimed that a lot of individuals were finding it difficult to make ends meet because of persistently high inflation.
“Today is a shopping day for everyone. It’s awful; every time we go without money, it gets lighter and lighter. Eating seems like a luxury these days.”
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