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Uruguay and Argentina among the ten countries worldwide with highest inflation

Sunday, January 8th 2012 - 05:36 UTC
Full article 17 comments

Inflation in Uruguay was not only far above target domestically but also figures among the ten highest in the world, and in Latam only behind Argentina and Venezuela Read full article


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  • ChrisR

    The fiscal drag of the government employed Uruguayos is the root cause of the problem.
    While people are employed by the government they do not contribute to the country in the form of income tax: and yes, I know they pay tax, but WHO pays their wages to pay the tax - the employed do, no-one else.
    What is really needed are a few lessons from Brasil in encouraging manufacturing and other wealth producing industries / sectors. Every 10% reduction in goverment employees WHO ARE GAINFULLY EMPLOYED IN THE PRIVATE SECTOR (and yes I know that is difficult but think it through) means a 20% reduction in fiscal drag.
    The UK are going the way of Uruguay and it is costing the actual productive workers their savings growth, if they can save at all.
    I know this will be very unwelcome by goverment employees but it needs facing.

    Jan 08th, 2012 - 02:55 pm - Link - Report abuse 0
  • ElaineB

    I think the UK government are making a lot of job cuts. It is part of the reason for the protesting that we have seen from time to time recently. They had to move away from New Labour's spend, spend, spend policies and whilst it is painful, the majority accept NL policies were unsustainable. If you borrow, you have to pay it back. NL borrowed to pay for their populist policies and now we have to make cuts to continue paying our loans and to keep our reputation as a good credit risk. One area that will see huge cuts is the public sector.

    Jan 08th, 2012 - 03:23 pm - Link - Report abuse 0
  • ChrisR

    2 ElaineB

    I wish it were the case that cuts were being made but you only have to look at public spending.

    It should have been going down by now and in fact, it is still going up!

    Difficult to understand that if cuts are being made and even Osborne has admitted that 'cuts have yet to take effect'.

    Jan 08th, 2012 - 06:25 pm - Link - Report abuse 0
  • briton

    it will get a lot worse before it gets better, thats for sure,

    Jan 08th, 2012 - 08:08 pm - Link - Report abuse 0
  • ElaineB

    I agree it will take time but a lot of public sector workers are going to have to move to the private sector over the next few years. It was never going to be a quick process, not least because public sector unions are strong. (Not to mention greedy).

    Jan 08th, 2012 - 08:16 pm - Link - Report abuse 0
  • ChrisR

    It is exactly the same in Uruguay.

    The same with regard to working less hours than the private sector, especially with the plethora of holidays AND the strikes, usually over the slightest thing. They seem to be directly comparable to the NHS.

    Jan 08th, 2012 - 09:08 pm - Link - Report abuse 0
  • briton

    Rather than wait on the Europeans all he time,
    The government should start programs of public works to creat jobs and money,
    government investment in
    Rebuilding of roads and motorway’s,
    Rebuilding and upgrading railways
    Rebuilding and upgrading of the ship yards
    Re building and investing of the steelworks,
    And of course re investing in the fishing industry,
    Build new dams and electric generators, save us importing it from abroad,
    Just a few things that may help to create thousands and thousands of jobs, instead of waiting on the Europeans,

    Jan 08th, 2012 - 09:28 pm - Link - Report abuse 0
  • O gara

    Briton you are a true Cristianista. ITS TRULY GREAT TO SEE YOU EDUCATED

    Jan 09th, 2012 - 12:09 am - Link - Report abuse 0
  • bullcreek

    this journalist needs to go back to school and learn economics, there is a very small to no coralation between unemployment rate and inflation. A very common misconception.

    Jan 09th, 2012 - 12:57 am - Link - Report abuse 0
  • Fido Dido

    government investment in
    Rebuilding of roads and motorway’s,
    Rebuilding and upgrading railways
    Rebuilding and upgrading of the ship yards
    Re building and investing of the steelworks,
    And of course re investing in the fishing industry,
    Build new dams and electric generators, save us importing it from abroad,
    Just a few things that may help to create thousands and thousands of jobs, instead of waiting on the Europeans,

    Can only happen when you stop bailing out the banks (who are looting the country) by putting BOE out of business! To many zombies still haven't figured out and won't since they (the banksters) have their tools (the government, both sides, labour/tories) in their pockets.

    by the way, how's tony blair? :D

    Jan 09th, 2012 - 05:50 am - Link - Report abuse 0
  • laceja

    The answer is, for certain, NOT more “government investment”. Government never invests. Government only confiscates wealth, takes out 30%, and “spends' the rest. That has only the affect of enslaving the people. For Uruguay, inflation is a given, because so much is imported and nearly everything that's imported is ”priced” in dollars, which is losing its value at an accelerating rate.

    The solution for Uruguay is the same as it should be the world over... reduce government spending (shrink government), eliminate income taxes altogether, raise import duties. allow (even encourage) competing currencies, eliminate minimum wage, and stop regulating. One huge problem for government is unions. Unions have no place in government. Why? Because, they can always “vote” themselves a raise. Besides, the only real beneficiaries from unions are the union leaders. Unions have their place in private industry, but no in government.

    Allowing competing currencies keeps the government from “overprinting” money, which is the real reason there is inflation. When the government (or a private bank) has the ability to print as much money as it wants, you get the terrible boom/bust cycles, of which we're all very painfully aware. You also get a huge amount of corruption. Next time you visit your bank, just take a look around and ask yourself, where did all the money come from to build that beautiful building. It was from having the ability to create money to loan right out of thin air... just the push of a computer button.

    Jan 09th, 2012 - 02:46 pm - Link - Report abuse 0
  • Conqueror

    Whoops! Argentina is broke. According to this story Argentina's inflation is 22%. Must be the reason for all those government-funded pay “rises”. Meanwhile, the UK inflation is less than 5%.

    Oh, sorry. Was I not supposed to tell argies that?

    Jan 09th, 2012 - 03:33 pm - Link - Report abuse 0
  • O gara

    Well done Conqueror you are doing well four lines without the word hate?
    Did you really manage it last night has the pain abated a little?The wife must be in compliant mood tell us about it.
    BTW Argentinas growth rate 2011 is 9% Englands is 0,000000001%
    In 2012 it will be more of the same!!!!!!!
    Careful now mind the back not to mind that little thing you finally got to use after so long
    Take care dear boy

    Jan 09th, 2012 - 04:57 pm - Link - Report abuse 0
  • Nightingale

    You have to feel sorry for them... 22% and 7% unemployment and CFK calls this a boom...

    Jan 09th, 2012 - 06:18 pm - Link - Report abuse 0
  • ChrisR

    11 laceja

    Spot on!

    But how will it change when the government know there may be riots if only 10% of govt employees are cut loose, neverming the 50% that is really needed.

    Perhaps one way would be to split up the really big govt monopolies such as ANCAP, ANTEL, the insurance concert party (BSE et al) but only in 25% bundles to promote real competition.

    No possibility for rejoining by amalgamation, purchase, whatever, so genuine competition is ensured.

    Jan 09th, 2012 - 06:36 pm - Link - Report abuse 0
  • laceja

    ChrisR, I didn't say it would be easy. In fact, it will be the most difficult effort one can imagine. Sorry, there will be one other option, which will be far more “difficult” and that would be to continue on the current path.

    Yes, there would be considerable unrest, but in the end, prosperity would prevail.

    Genuine competition is only possible, when you remove the driving factor behind the corruption. And, that is to stop the printing presses for churning out more and more fiat money, which is just handed over to the bankers, who control the politicians. Uruguay is already further down the path to success than most countries, because it has “private” banks, where one can have an account in whatever currency one wishes. The next step would be to back up the country with gold reserves, instead of worthless Dollars and Euros.

    Jan 09th, 2012 - 06:50 pm - Link - Report abuse 0
  • briton

    8 O gara
    Interesting .
    10 Fido Dido, we don’t always get on,, but you understood what I meant,
    Yes we must stop bailing out banks, and governments should invest in its people,

    Sorryright reply but wrong blogg,
    But the result would be the same, one must invest to create wealth and jobs,
    Just a thought .

    Jan 09th, 2012 - 06:57 pm - Link - Report abuse 0

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