The year-on-year price increase was 124.4% and only in the first eight months of 2023 the Consumer Price Index (CPI) accumulated an increase of 80.2%. Sergio Massa, current Minister of Economy and presidential candidate, blamed the International Monetary Fund (IMF) for last month’s record. To mitigate the impact of the data, the government announced a series of measures aimed at no tributaries, retirees and workers who do not pay income tax.
Argentina reached double-digit monthly inflation and is plunged into a worrying economic crisis. The data published in the last few hours corresponds to last August. During that period, the South American country reached 12.4% and the highest percentage in more than 32 years.
According to a report by INDEC, the year-on-year price increase was 124.4% in the last twelve months and only in the first eight months of 2023 the Consumer Price Index (CPI) accumulated an increase of 80.2%.
Items with the Greatest Inflationary Impact in August in Argentina
Everything escalated the week after the primary elections (PASO) which, let us remember, marked the opposition victory of the presidential candidate Javier Milei, leader of the La Libertad Avanza party. According to official figures, the three segments with the greatest increases were the following:
- Food and non-alcoholic beverages (15.6%)
- Health (15.3%) –mainly due to increases in medications
- Home equipment and maintenance (14.1%)
The dramatic number is explained by various events at the time. On the one hand, the powerful devaluation of the official exchange rate after the primary elections (almost 22% in a single day). On the other, the increase in the Country Tax of 7.5% and the volatility of financial dollars before the elections. There were also increases in the price of meat, a product that was months behind in terms of its value.
Minister of Economy and Presidential Candidate of Argentina Blamed the IMF for Inflation
Sergio Massa, current head of Economy and official candidate for the presidency of Argentina, launched a forceful message to explain the terrible inflation data for August. Without further delay, the Minister blamed the International Monetary Fund (IMF) for last month’s record. The official questioned the dollarization plan of his rival in the presidential elections Javier Milei.
The candidate announced a series of measures aimed at no tributaries, retirees and workers who do not pay income tax. The Argentine government estimated that the resolution will reach more than 9 million beneficiaries. These notes are added to the measures adopted at the end of August to mitigate the impact of the increases.
Cryptocurrencies as an Antidote to Inflation
A recent study that collected the opinions of 3,500 people concluded that 35% of Latin Americans see cryptocurrencies as a safe investment.
The crisis in which the South American country is immersed leads cryptocurrencies to be considered as a tool to preserve the value of the citizens’ capital. Residents of that country mention several reasons for this, the top three are that cryptocurrencies would be used for saving, supplementing income and fighting financial instability.
Issues such as economic recession and high inflation are presented as two decisive factors to explain why Argentines turn to cryptocurrencies. Argentina is the 15th country with the highest crypto adoption. It arises from the preview published by the analysis firm Chainalysis, which has presented conclusions on its fourth annual index of global cryptocurrency adoption.
By Leonardo Pérez
