May 2, 2022 · less than 3 min read
Death, taxes, and high inflation in Argentina.
On the up
Inflation has become a real problem for just about everyone this year. Your favorite lunch? One dollar more. Your mortgage? A whole lot more. It’s a tough time for all of us – just make sure you spare a thought for Argentina.
Inflation levels in the South American country have been extremely high for decades, and are currently running at almost 50% in some areas. Try negotiating yourself a 50% salary increase on an almost yearly basis, and you’ll have an idea of what life has been like for millions of Argentinians.
The eternal war
The president is vowing to wage a war on inflation and has increased the number of food stamps by 50%, but there’s little sign the inflationary spiral will be stopping there. The extreme rates have been persistent for decades and have caused the country no shortage of problems when it comes to debt financing.
At this point, you might be wondering why the country hasn’t asked for financial support. The problem is, it already has. Due to various crises plaguing the country, Argentina has already asked bodies like the IMF for help, and they’ve only recently signed off on a new deal to restructure a 2018 loan already given to the country.
But in an escalating situation, and with previous measures to help having already failed, it remains to be seen what, if anything, can be done quickly to resolve the chaos in Argentina.
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