Argentina Inflation Rate Peak 114%, Citizens Desperate for Help
In May, Argentina’s annual inflation rate topped 114%, becoming the world’s third highest. It is the first time in three decades since 1989-1991 hyperinflation when rates peaked at more than 3000%.
Inflation has been long since the 2018 Argentina monetary crisis when its foreign debt obligations bulged to unsustainable levels, collapsing the peso to half of its value against the dollar. Despite the help from the IMF with a $57billion relief package, the economy failed to recover.
Since then, 40% of Argentines have lived in poverty today, with a 6.6% monthly rise expected in the Consumer Price Index (CPI). The working class in Argentina can no longer afford basic needs, forcing more than a thousand Argentines to leave their country.
The historic drought in nearly 60 years also contributed to a severe inflation jump. Argentina is a leading exporter of soybeans as well as other agricultural products like corn, wheat, and other grains. But with major export good crops failing, Buenos Aires Grain Exchange (BAGE) has slashed agricultural yields to levels not seen since the turn of the century. Soy harvest exchange dropped from a five-year average of 45 million tons to only 25 million metric tons, resulting in a decrease in job opportunities and tax revenue.
“I am tired, tired, just tired of all this, of the politicians who fight while the people die of hunger,” she told Reuters. “This can’t go on anymore,” said Patricia Quiroga.
Further solutions should be announced soon for the sake of the country and the citizens.