Argentina inflation soars above 100%, cost of living crisis worst in 30 years

A woman shops for produce at a market subsidised by the municipality so residents can buy at lower prices amid rising inflation, in Lomas de Zamora, Argentina. Photo / AP

People in Argentina can’t even afford basic groceries as the country’s inflation skyrockets by more than 100 per cent – its worst record in 30 years.

Argentinians are paying more than double for essential items compared to last year. Many of the country’s population already live in poverty; now citizens are being further battered by the quickest rise in prices since 1991.

Inflation over 12 months rose to a whopping 102.5 per cent in the second month of the year, according to government data.

By comparison, the annual inflation rate in Australia sits at 7.8 per cent.

The Argentinian government has been trying to tackle rises by capping the prices of food and other products as it tries to hang on to power with an election looming later this year.

But it’s also grappling with a higher-than-expected 6.6 per cent monthly rise in the Consumer Price Index (CPI) and a 13.1 per cent year-to-date increase.

Food and drink became even more expensive; prices soared by 9.8 per cent in February compared to January, particularly for dairy and eggs.

Meat in particular was hiked by a staggering 20 per cent in just a month after adverse weather conditions, including a prolonged heatwave, wildfires and a historic drought – the worst in 60 years – impacted livestock and crop, according to local news outlet Ambito.

As a result, Argentines are suffering as they experience one of the world’s highest rates of inflation – only behind Zimbabwe, Lebanon, Venezuela and Syria – causing the cost of living to soar.

Retiree Irene Devita, 74, was checking prices in a market fair in San Fernando on the outskirts of Buenos Aires as costs fluctuate weekly.

“There’s just nothing left, there’s no money, people don’t have anything, so how do they buy?” she told Reuters.

“The other day I came and asked for three tangerines, two oranges, two bananas and half a kilo of tomatoes. When he told me it cost 650 pesos (NZ$5). I told him take everything out and leave just the tomatoes because I don’t have enough money.”

A woman shops at a subsidised market in Lomas de Zamora, Argentina, this week. Photo / AP

Politicians have also been accused of fighting between themselves while people “die of hunger”. The government had three economy ministers in just four weeks last summer as the country’s economic crisis deepened.

There are also reports President Alberto Fernández can’t agree with his deputy, Cristina Fernández de Kirchner, over how to tackle Argentina’s economic problems.

Yet, polls have shown that inflation is a primary concern among Argentines, followed by corruption and poverty as an election is set to take place in October.

Protesters took to the streets last September to demand action on the skyrocketing cost of living, while in February Argentina’s central bank said a new 2000-peso (NZ$16) banknote would be issued in response to the jump in prices.

Yet the central bank’s money printing has been one of the factors that reportedly have added to the soaring prices as the amount of money in public circulation has quadrupled during the president’s first three years in office.

The International Monetary Fund (IMF) also has a loan deal in place with Argentina and approved another $US6 billion (NZ$9.74b) of bailout money in December.

Argentina has the second largest economy in South America but a debt crisis in the 1980s also caused hyperinflation for a decade and the country continues to struggle to recover.

Analysis by Bloomberg last year revealed some shocking results about costs for items for Argentinians that Australians take for granted.

“A two-hour domestic flight costs the same as a month of college tuition, a pair of sneakers is equal to the minimum monthly social-security payment, and a new iPhone goes for half a year’s average rent or more,” the publication noted. - news.com.au