In a dramatic economic context, Argentina, under the presidency of Javier Milei, ended the year 2023 with an alarming annual inflation rate of 211.4%. This number not only sets a record in the country’s recent economic history but also places Argentina as the second highest inflation country worldwide, surpassing even Venezuela, which recorded a 193%.
According to the National Institute of Statistics and Censuses (Indec), the inflation rate in the month of December reached 25.5%, which is a considerably higher percentage than in any other month of the past year. This sudden increase reflects a rapid intensification compared to previous months.
The economic strategy implemented by Milei consisted of a significant depreciation of 50% of the value of the peso at the beginning of his term, with the aim of facing the economic crisis. However, after the management of Alberto Fernández and his Economy Minister, Sergio Massa, there has been a considerable increase in the prices of essential products as a result of the ‘sincerity’ process.
The current economic situation brings to mind the hyperinflation that occurred in Argentina during the years 1989 and 1990, which resulted in high poverty rates and an annual increase of over 3000% in consumer prices.
According to CNN information, Argentina is currently the second country with the highest inflation rate globally, being surpassed only by Lebanon. The Argentine crisis stands out in comparison to other countries, as only a few, like Venezuela and Lebanon, have experienced an accumulated inflation rate of more than 100% in a year. The situation is so severe that nations like Syria have stopped publishing economic data.
The economic situation in Argentina not only presents significant challenges domestically, but also stands out globally, highlighting the serious difficulties that the country faces in its battle against inflation and the economic crisis.
