Argentina’s Economy Unexpectedly Shrank Amid Austerity Push

[Redpossum]

FYI inflation was less than 50% in those days in pesos while there was not inflation in USD.
Today Miley prints pesos with inflation in USD. Let´s see, the gas was 254 pesos and now is 1374 while the dolar blue is the same. This means over 400% inflation. This increase in the fuel makes all the prices to go up.

Thank you, Bajo, for that calm and sensible reply. You are, of course, absolutely correct that higher fuel prices drive up the price of everything, because it all has to be delivered.

Again, if we are talking about Cristina, in early 2014 people were angry because nafta (gasoline, petrol), was almost 20 pesos a liter. The dolar oficial was 7 to 8 pesos and the blue was 11 or 12

 

[FrankPintor]

A reduction in (Peso) inflation is something to be welcomed, since inflation affects mostly the poor who live week to week and have no way to dodge price increases, unlike the better off with more resources. On the other hand, 2-3% inflation per month is nothing to crow about (and how they crow).

400% fuel price inflation is huge, and certainly impacts prices here, everything needs to be transported.

From https://batimes.com.ar/news/opinion-and-analysis/the-ecstasy-of-javier-milei.phtml

"There are many factors helping to keep a lid on inflation, including the persistence of budget surpluses and the persistence of currency controls. Yet several economists, many of them ideologically close to Milei and Caputo, are beginning to warn that Argentina is “becoming expensive in dollars,” meaning that the peso is artificially strong. This is a situation that the International Monetary Fund has pointed out in the past, sparking aggressive reactions from Milei. Recent experience, including Mauricio Macri’s 2015-2019 Presidency, when Caputo and Federico Sturzenegger were also in charge of the nation’s economic levers, ended up with jarring devaluations that initiated a new and deeper descent into economic decrepitude".

Rinse and repeat? With the same "caste" actors?

 

[Redpossum]

A reduction in (Peso) inflation is something to be welcomed, since inflation affects mostly the poor who live week to week and have no way to dodge price increases, unlike the better off with more resources. On the other hand, 2-3% inflation per month is nothing to crow about (and how they crow).

400% fuel price inflation is huge, and certainly impacts prices here, everything needs to be transported.

From https://batimes.com.ar/news/opinion-and-analysis/the-ecstasy-of-javier-milei.phtml

"There are many factors helping to keep a lid on inflation, including the persistence of budget surpluses and the persistence of currency controls. Yet several economists, many of them ideologically close to Milei and Caputo, are beginning to warn that Argentina is “becoming expensive in dollars,” meaning that the peso is artificially strong. This is a situation that the International Monetary Fund has pointed out in the past, sparking aggressive reactions from Milei. Recent experience, including Mauricio Macri’s 2015-2019 Presidency, when Caputo and Federico Sturzenegger were also in charge of the nation’s economic levers, ended up with jarring devaluations that initiated a new and deeper descent into economic decrepitude".

Rinse and repeat? With the same "caste" actors?

VLLC, amIright?

 

[Mondongo]

Really? You are saying we do not have inflation in USD?

Please point out to me what my post has to do with saying we do not have USD inflation.

 

[LuckyLuke]

I hear what you're saying, and you make some good points.

But I will say it again. I'm not impressed with economic theory, or numbers on a spreadsheet. What matters to me is, can people feed their families adequately. I don't give a damn about fancy discussions at some university or think tank. It is the experience at the checkout that I care about. Can we pay the rent, pay the gas & light bills, feed the family, and get back and forth to work. Is there medical care available when we or our kids get sick.

The rest is pie in the sky, and the numbers are all falsified anyhow.

I'm not impressed by price ceilings on electricity so we can enjoy a summer of blackouts either. Somewhere in there is a happy medium that no political body can seem to find.

 

[Quilombo]

I'm not impressed by price ceilings on electricity so we can enjoy a summer of blackouts either. Somewhere in there is a happy medium that no political body can seem to find.

That's the thing, based on the macro economy quilombo we've seen, I'm personally betting on expensive electricity with blackouts v.s. cheaper electricity and blackouts like last year. The government has basically already said as much

Cortes de luz en el verano: advierten que la falta de energía eléctrica podría ser el doble de lo que proyectó el Gobierno

La Secretaría de Energía acelera en la implementación de su Plan de Contingencia para meses críticos. El déficit podría llegar a los 2.500 MW, equivalente al consumo de más de un millón de hogares

www.infobae.com

 

[FrankPintor]

That's the thing, based on the macro economy quilombo we've seen, I'm personally betting on expensive electricity with blackouts v.s. cheaper electricity and blackouts like last year. The government has basically already said as much

Cortes de luz en el verano: advierten que la falta de energía eléctrica podría ser el doble de lo que proyectó el Gobierno

La Secretaría de Energía acelera en la implementación de su Plan de Contingencia para meses críticos. El déficit podría llegar a los 2.500 MW, equivalente al consumo de más de un millón de hogares

www.infobae.com

Chronicles of a disaster foretold. It's depressing. And it was so avoidable. I've been recommended to get an 8kVA Generac generator to connect to the gas network (which supposedly won't go down), but it's being put off until we've paid for the leak on the roof to be fixed. Maybe it will be paid for and running by late January. In the meantime we can keep cool in the pool.

In theory we could even run the electrics from the generator and leverage price differences between electricity and gas (which are very much in favour of gas right now, but who knows in the future).

So far we've been lucky with the weather, it's been wetter than I expected, with periodic drops in the temperature. But we have a whole summer to go yet.