President Milei Slows Inflation to 2021 Levels in Major Win for Argentine People

[antipodean]

Can anyone point to another case where a country's annual inflation reached 3 digits and was brought back to a single digit in less than a year?

The race for or against hyperinflation is still being run and it doesn't make sense to celebrate or condemn the current number until that number of annual inflation falls back in the range of a "normal" country or appears to "level off" - although fair game to talk about the speed, form and overall trajectory of inflation and part of doing that is acknowledging the current downward trajectory to date.

Anyone expecting overnight miracles to stop hyperinflation (and indirectly the social problems that it brings) or insinuating that they may exist under someone else's leadership is an utter gil.

 

[redlobster]

Can anyone point to another case where a country's annual inflation reached 3 digits and was brought back to a single digit in less than a year?

For starters, Domingo Cavallo did it in Argentina with the Convertibility Plan back in 1991, which eventually contributed to economic collapse in 2001.

Here are probably some more examples where inflation was drastically reduced in a short period of time:
Israel 1984
Bolivia 1985
Poland 1989
Peru 1990
Bulgaria 1996

 

[antipodean]

For starters, Domingo Cavallo did it in Argentina with the Convertibility Plan back in 1991, which eventually contributed to economic collapse in 2001.

Here are probably some more examples where inflation was drastically reduced in a short period of time:
Israel 1984
Bolivia 1985
Poland 1989
Peru 1990
Bulgaria 1996

In none of these cases cited inflation fell from three digits to one digit in a year or less.

Israel's 1985 economic stabilisation plan brought inflation down form 450% to 20% in two years (in part achieved by replacing the national currency with a new one)
With Poland's Balcerowicz plan inflation went from 567% in 1990 to 7.15% by 1999, at the cost of 3 years of economic output.
Peru went from 7481% in 1990 to 409% in 1991 to 74% in 1992...and only reached single digit inflation in 1997.
Bulgaria in 1996 went from 121% to 1058% in 1997....dropping to 18% in 1998, after switching to a currency board system separating issuance from banking.
Bolivia went from 11749% in 1985 and only arrived at a single digit level of inflation 1997.

And Argentina did away with inflation in 1991 by changing its currency and pegging it to the USD (which was an option proposed by which presidential candidates in 2023 exactly...?) similar to Ecuador having gone from 96% in 2000 to 7.93% by 2003 by dolarizing.

So, using the logic of these examples as the definition of "short" periods of time, Argentina reducing inflation from 200%+ in December 2023 to 18%ish (as projected by the government) or 38%ish (as projected by private consulting firms) in December 2025 would be completely reasonable from a time taken perspective, and having inflation of 104% in December 2023 would be an acceptable part of such a gradual downward trajectory as it was for all these other countries providing the trajectory continues downwards. Especially considering the peso remains in-tact and un-pegged?

 

[redlobster]

Can anyone point to another case where a country's annual inflation reached 3 digits and was brought back to a single digit in less than a year?

... Argentina reducing inflation from 200%+ in December 2023 to 18%ish (as projected by the government) or 38%ish (as projected by private consulting firms) in December 2025 ,,,

Sorry, just to clarify, which of these do you consider to be a single-digit number: 18% or 38%?

 

[antipodean]

Sorry, just to clarify, which of these do you consider to be a single-digit number: 18% or 38%?

Neither, nor did I imply either was. My response was clear that going from three digits to two digits in two years is entirely in line with the other countries you cited.

 

[redlobster]

Can anyone point to another case where a country's annual inflation reached 3 digits and was brought back to a single digit in less than a year?

Neither, nor did I imply either was.

So, you were saying Milei didn't bring inflation down to single digits, and nobody else did either, so he must be good?

I'm just trying to understand how this cheerleading logic works.

'Milei didn’t invent time travel, and nobody else did either, so he must be a genius?'

Am I getting close?

 

[saucerfam]

Debatable … but for everyday folks, it’s still that things cost 2-3x’s more - food, rent and utilities, than a year ago. Those will not be coming down. I’d shelve the red cape and tights for now.

 

[antipodean]

So, you were saying Milei didn't bring inflation down to single digits, and nobody else did either, so he must be good?

I'm just trying to understand how this cheerleading logic works.

'Milei didn’t invent time travel, and nobody else did either, so he must be a genius?'

Am I getting close?

I’m saying exactly what I said in my first post.
No one, Milei included, ever promised an overnight solution to hyperinflation, and as long as the trajectory continues in a downward direction without leveling off at “normal country levels” it is too early to judge his performance on this front.

Your patient is still bleeding and breathing, although he is bleeding less than he was before.
If you were expecting an overnight solution, which by the logic of implying he is doing badly on inflation may suggest, then you obviously haven’t paid attention to how hyperinflation panned out in other countries.

But I get it, with an extremist ideological mindset if one doesn’t publicly call Milei names or condemn every and anything remotely linked to him ignoring even the most basic facts, such as a downward inflationary trajectory, then one is a “cheerleader”.

 

[Ruta Otto]

Argentina Inflation Slows to 2021 Levels in Win For Milei

Argentina’s monthly inflation reached the lowest level since late 2021, scoring a significant win for President Javier Milei as he makes lowering price spirals the centerpiece of his administration.

www.bnnbloomberg.ca

 

[perry]

Argentina Inflation Slows to 2021 Levels in Win For Milei

Argentina’s monthly inflation reached the lowest level since late 2021, scoring a significant win for President Javier Milei as he makes lowering price spirals the centerpiece of his administration.

www.bnnbloomberg.ca

One of the most ridiculous posts I have seen on this forum . The reality is the inflation for 2024 is the worst ever recorded because it is is hard currency creating price increases of over 300 percent for many items in us dollars . There is not one example ever of this type of inflation ever recorded since the american dollar has been in existence . When a country has high inflationn hard cirrencies increase in value against the local currency . Here in Argentina its been the reverse and just the last month alone costs in us ollars have gone up over 30 percent in us dollars as the peso strenghtens from 1400 to 1100 per dollar . Completely isolated to common economic sense creating a financial crisis for 80 percent of people that is unequal in Argentinian history . But the cheerleaders for Milei have the eyes closed to the terrible suffering of the local population which now has a poverty rate of over 60 percent what is there to cheer about ?