In December alone, prices in the South American country hit by a severe economic crisis rose by 25.5 percent, as the national statistics agency Indec announced on Thursday in Buenos Aires. This means that the year 2023 ended in Argentina with the highest inflation rate since the hyperinflation of 1990.
The inflation rate in Argentina is one of the highest in the world. South America’s second largest economy suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of a lot of tax revenue.
The new ultra-liberal President Javier Milei wants to get Argentina back on track with a radical austerity program. The government sharply devalued the local currency, the peso, and announced cuts to subsidies on gas, water, electricity and public transport, which is likely to further fuel prices.
