Rate at over 250 %

Argentinians struggle with mega-inflation

Waiting for free food. The cooks fear that there won't be enough pasta for everyone.(Bild: APA/AFP/JUAN MABROMATA)

Argentina is currently struggling with the highest inflation rate since 1991 - the annual inflation rate is now a whopping 254%. So far, there is no improvement in sight and the forecasts are gloomy.

In January, prices in the South American country, which has been hit by a severe economic crisis, rose by 20.6 percent, as the national statistics authority Indec announced in Buenos Aires on Wednesday. In particular, the cost of personal care products, transportation and communication rose sharply. The year 2024 thus began with the highest inflation rate in Argentina since the hyperinflation of 1991.

Inflation in Argentina is one of the highest in the world. South America's second-largest economy suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of many tax revenues.

Government works on radical austerity program
The new ultra-liberal President Javier Milei wants to get Argentina back on track with a radical austerity program. The government has sharply devalued the national currency, the peso, and announced cuts to subsidies for gas, water, electricity and public transport, which is likely to push up prices even further.