Yes, there is a spike… and Milei has masked the most recent one with a devaluation by decree
2023: 211% inflation
2024: 117% inflation / 54% by decree = 216% effective
Argentina has a serious case of stagflation, with public spending slashed, international investors capped in their ROI, and a poverty level going back to 2005 numbers.
I’m generally not a fan of dollar pegs, but refloating the peso led to all sorts of problems. This is of course IMF related, but that might start getting a bit too wonky.
To be fair, I haven’t been following Argentina too closely. Still, remembered how during the campaign, he promised to “reduce inflation to 150% and devalue by 50%”… which was like “what? so 300%?”. Not sure how they managed to close the year at 117% (and 54%), in October it was at 193% (and 54%). I haven’t checked the full “inflation & devaluation” series.
Yes, there is a spike… and Milei has masked the most recent one with a devaluation by decree
Argentina has a serious case of stagflation, with public spending slashed, international investors capped in their ROI, and a poverty level going back to 2005 numbers.
I’m generally not a fan of dollar pegs, but refloating the peso led to all sorts of problems. This is of course IMF related, but that might start getting a bit too wonky.
To be fair, I haven’t been following Argentina too closely. Still, remembered how during the campaign, he promised to “reduce inflation to 150% and devalue by 50%”… which was like “what? so 300%?”. Not sure how they managed to close the year at 117% (and 54%), in October it was at 193% (and 54%). I haven’t checked the full “inflation & devaluation” series.