MercoPress. South Atlantic News Agency
Argentine Inflation ended 2019 at 53.8%, the highest figure since 1991
The hardest hit sectors were health (72%), communications (64%) and home maintenance equipment (64%). Food was up, 62%. Inflation in Argentina ended 2019 at 53.8%, the highest figure since 1991 when the peso was pegged to the US dollar, data institute Indec said on Wednesday. Indec said the cost of living increased by 3.7% in December alone.
The hardest hit sectors were health (72%), communications (64%) and home maintenance equipment (64%). Food was up, 62%.
Argentina's inflation rate is one of the highest in the world and second only in Latin America to crisis-hit Venezuela. Argentine inflation in 2018 was already 48%.
Argentina is mired in a recession provoked by a currency crash 18 months ago. Poverty has soared since then.
Argentina is no stranger to inflation having recorded figures of more than 3,000% in 1989 and 2,300% the next year. In 1991, the country tried to fix its problems by hitching the peso's value to the dollar. But that was abandoned 11 years later after Argentina defaulted on a US$100 billion debt in the midst of a financial crisis that began in 2001.
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Read all commentsWhere are now the cheerleaders who, over the four years of the Macri administration kept repeating like parrots that everything would be okay -- only some sacrifices had to be made?
Jan 18th, 2020 - 06:11 am 0The worst part is that not only inflation is eroding the Argentines' pockets -- breaking in 2019 an almost three-decade record -- but a stubborn recession that has paralyzed the economy.
The only remaining discussion is about whether Macri's plans failed -- or if he was determined from the beginning to arrive at such result.
Either way, the damage is extensive. Alberto has a tonne of work to do to redress the situation.
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