Argentina is one of the few countries where the annual rate of inflation has reached an unbelievable 113%. But an even bigger problem is that there seems to be no end to this ordeal as inflation continues to rise even further!
This unbelievable rise in inflation has made it difficult for the average Argentine citizen to manage their budget and even to afford everyday items.
In the next few days, we will get the monthly inflation rate of Argentina, which is expected to be around 12%. If we take a look back, such a high level of monthly inflation was last seen in 1991. Elsewhere, numbers like these are normally seen in annual inflation which highlights the severity of the situation.
40% Population Is In Poverty
The sudden increase in the prices can be attributed to the Pseo's devaluation, which has led to the rise of the cost-of-living crisis in the country. Recent statistics reveal that 40% of the population is in poverty and is ready to show their anger in the upcoming elections.
According to one shopper, it is getting hard every day as the prices continue to rise with no end in sight. It almost feels like one is racing against the clock in an attempt to find low prices.
To make things more difficult, Argentina is also trying to restore its deal with the IMF worth about $44 billion. In addition, the country is also facing the takeover of YPF (energy company) after a recent filing by the US court.
According to some experts, the annual inflation will soon touch the 180% level which will take things to a whole new level. Meanwhile, other countries in the region are actually experiencing a cooldown in inflation.
Officially, an inflation rate that's higher than 50% is regarded as hyperinflation. Based on that definition, it seems Argentinian citizens are already facing the effects of hyperinflation.