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Javier Milei (53) has been managing Argentina for two weeks. He inspires libertarian populist voters, causes unrest internationally, and as president wants to fundamentally transform Argentina’s economy through more than 300 measures. State-owned companies will be privatized, labor laws will be weakened, and the doors will be thrown wide open to foreign investors. Milei had already lost more than 50 percent of its national currency, the Argentine peso.
Milei presented the broad package of measures to the public last Wednesday. Thousands of Argentines later flocked to the streets of the capital Buenos Aires to protest. Protesters banged pots and pans to show their displeasure. In response, the Argentinian government threatened the demonstrators with fines and revocation of their social security.
Everyday items are sometimes more than twice as expensive
Even before Milei’s election on November 19, Argentina was suffering from the third-highest inflation rate in the world. Instead of solving inflation, the new president is pushing it to unprecedented levels. This affects both businesses and households. “We have been constantly worried since Milei won the election,” Fernando Gonzàlez Galli, 36, a philosophy teacher in Argentina’s capital Buenos Aires, told the New York Times.
The Welshman tries to spend his pesos as quickly as possible; before their values drop further. “As soon as I get paid, I buy as much as I can,” he says. For the father of two, nappies already cost twice as much as they did in November.
However, the only product whose prices have continued to increase since the beginning of the month is definitely Pampers and Co. not. Imported goods such as coffee and electrical appliances have become much more expensive due to the weak peso. The price of gasoline increased by almost two-thirds. “It’s impossible for our wages to adjust so quickly,” says Nahuel Carbajo, 37, owner of a wine bar in Buenos Aires. He now pays 73 percent more for his steaks. In fact, zucchini has become 2.5 times more expensive.
Inflation is part of Milei’s plan
For Milei, accelerated inflation is part of the plan. When he took office, he warned that reducing the size of the state and restructuring the economy would be difficult at first. “I would rather tell you unpleasant truths than a pleasant lie,” he said at his swearing-in ceremony on December 10.
According to the government, strong inflation is expected in the coming months. Overall, according to official figures, there was a 13 percent increase in November. Analysts expect prices to rise another 30 percent this month. According to some experts, daily products will be 80 percent more expensive in February than in December. (Snap)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
