Inflation Is Falling, But Argentines Are Not Yet Better Off

[MilHojas]

https://finance.yahoo.com/news/inflation-falling-argentines-not-yet-150040171.html

Argentina’s sharp economic reforms cut inflation but pushed more than half the population into poverty, raising questions about President Javier Milei’s austerity drive.

 

[carride]

Is Javier Milei’s economic gamble working?

Inflation has plunged in Argentina, but some vital goods have soared in price

www.economist.com

archived: https://archive.ph/TUDss

 

[FrankPintor]

Is Javier Milei’s economic gamble working?

Inflation has plunged in Argentina, but some vital goods have soared in price

www.economist.com

archived: https://archive.ph/TUDss

View attachment 10149

Interesting, I wonder what the light and dark red colours signify?

INDEC's CBT or "canasta total" is supposed to include all of these:



However, I'm doubting some of the items in the chart: at least for pre-pagos like OSDE, monthly fees have jumped by about 170%, not 120% as shown. Electricity, gas, and water prices must make up a large part of the CBT, and at 400% increases, must have more impact on households (plus the public transport increases of 300%) than the average 122% increase indicated.

 

[LuckyLuke]

Electricity, gas, and water prices must make up a large part of the CBT, and at 400% increases, must have more impact on households (plus the public transport increases of 300%) than the average 122% increase indicated.

Depends how you define impact. My suegro's water bill in San Luis was $600 pesos per month last year. A 400% increase is $2,400 pesos. A pizza there costs $5,000 pesos. 1 month of water = half a pizza.

 

[Ries]

the rate of increase of inflation is slowing. all the previous inflation is still there, in the form of higher prices.
salaries are not going up to match.
So it means things are still bad, still getting worse, just doing it at a slightly slower pace.
Hurray!

 

[daveholman]

Inflation, like interest, compounds. Prices will never go back down. What is needed is for wages to catch up and surpass inflation. In a perfect world, 2% inflation when wages are going up 3%.

 

[mikic007]

Inflation, like interest, compounds. Prices will never go back down. What is needed is for wages to catch up and surpass inflation. In a perfect world, 2% inflation when wages are going up 3%.

They can't, it would be absurd, as often it was in the past. And unsustainable. I remember 10 years ago salaries were higher than in Spain for example, and not enough to back them. Peso needs to lose against usd steadily, salaries need to adjust a bit and prices should stay the same.

Now, to pull this off will demand a magician many think milei is, and if it'll happen, I'll swallow all my criticism.

 

[Gringo80]

Just saw 24.500pesos ($19.41usd) for a hamburger in a gas station!!!

 

[Rich One]

Inflation, like interest, compounds. Prices will never go back down. What is needed is for wages to catch up and surpass inflation. In a perfect world, 2% inflation when wages are going up 3%.

One way for prices to go down is to avoid buying at supermarkets. Recently, in January, Croatia , Serbia and other Balkan countries boycotted shopping at supermarkets...

Boicot de consumidores en Croacia hace caer 50% las ventas en comercios

Boicot de consumidores en Croacia hace caer 50% las ventas en comercios

www.lanacion.com.ar

Google Translate
The income of Croatian merchants fell by 50% on Friday, according to the tax administration, as a result of a boycott call launched by consumer associations to protest against rising prices.

 

[FrankPintor]

Just saw 24.500pesos ($19.41usd) for a hamburger in a gas station!!!

What petrol station do you go to?

Tangrill Los Cardales (Ruta 9, @tangrillarg) has its burger at 14500 Pesos. Not too much in the way of ambience, but it's nice enough, has a Havanna shop too, and a space for working when power goes down elsewhere (big generator out the back). There are other Tangrills around the place, I believe.