Gimena Páez could barely pay her bills. Then inflation in Argentina started rising even faster. The value of the country's currency plunged, making most goods nearly unobtainable. Getting enough food for herself and her 11-year-old daughter became a daily struggle. Inflation has been a problem across the world but Argentina is second in a World Bank ranking of countries with the highest food inflation. On Friday, Argentina's state-run INDEC statistics agency said that the inflation in food prices over the 12 months ending in April was 115%. That has been topped only by Lebanon, with a whopping 352%. Life was never easy for the neighbors of Nueva Pompeya, a lower-middle-class neighborhood where Páez lives at the southern end of Argentina’s capital. These days, for many in Argentina, paying bills and getting to the end of the month have taken a backseat to a more basic problem: getting enough to eat. Argentina’s annual inflation rate has already surpassed 100% a year. The price of food has increased even faster, leading many to rely on soup kitchens to get at least one hearty meal a day. Before the COVID-19 pandemic, Páez managed to make ends meet as a street vendor. She was forced to sell everything amid strict quarantine measures, and now spends much of her time trying to figure out how to feed her daughter. Susana Martínez, 47, who works at the soup kitchen several hours a week, is one of those questioning how much longer the current situation can last before there’s upheaval. At least four in 10 Argentines, and 54% of children under 15, are poor, according to the INDEC. Consumer prices in Argentina soared 8.4% in April from the previous month, while food prices increased 10.1%, the INDEC said Friday. In the first four months of the year, consumer prices increased 32%, and food prices soared 41.2%, according to the INDEC. Annual inflation reached 108.8% in April. President Alberto Fernández’s administration has been struggling to put the brakes on the country’s soaring inflation rate. In December, Economy Minister Sergio Massa said his goal was for monthly inflation to decelerate to 3% by April. That now seems like a pipe dream. Argentines are no strangers to inflation in part due to the government’s penchant for printing money to finance spending, which accelerated during the pandemic. Now, prices are also being pushed higher due to a punishing drought and a sharp depreciation of the local currency in financial markets last month amid stringent capital controls. The government has tried to reduce the impact of rising prices through price controls that have largely failed, and may mask the real rate of food inflation for the poorest members of society. In the first four months of the year, the price of food increased an average of 10.5% per month in small stores in Buenos Aires suburbs, where most people in the poorest neighborhoods do their shopping, according to research by the Institute of Social, Economic, and Citizen Policy Research. Argentina’s inflation rate, one of the world’s highest, is bound to be a key issue in the presidential election in October. Fernández has already said that he will not be seeking reelection.
from Times of India https://ift.tt/3BbnKlu
Comments
Post a Comment