Argentina’s Inflation Challenge
Recent setbacks highlight how difficult it will be for the Milei government to slow price increases.
BUENOS AIRES — Like the heat in the austral summer, inflation in Argentina is high and showing no sign of meaningful relief anytime soon. It rose from a monthly 13% in November to 25% in December and, according to the latest central bank survey, may come in at around 20% in both January and February. The recent increase has not been a surprise. It was partially driven by two long delayed adjustments: First, a sharp devaluation (from 365 to 800 pesos to the dollar) to narrow the exchange rate parallel premium and bring export dollars to unlock imports. And an inevitable reduction of...
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