BUENOS AIRES, Aug 30 (Reuters) – Argentina is battling triple-digit inflation, the highest in more than 30 years, and could rise to nearly 200% by year-end, adding to the hyperinflation of the late 1980s and other stirs up memories of economics. crisis.
The soaring prices, which accelerated this month after the government authorized a nearly 20% devaluation of the peso currency, are hurting consumers, widening poverty and fueling voter anger ahead of October’s general election.
With costs often fluctuating on a daily basis, fears of runaway inflation over the past few years have remained strong despite hopes that they can still be avoided, and despite regular government measures such as sharp interest rate hikes and price freezes to curb inflation. Came back.
“This is like a movie I’ve seen several times already,” said Roberto Gonzalez Blanco, an 80-year-old retired certified public accountant. She has four daughters and 11 grandchildren, one of whom went to Australia in search of better opportunities.
High inflation, which JPMorgan predicts could reach 190% this year, means prices are rising faster than wages, pushing four in 10 people into poverty, leading to a cost of living crisis and pushing people to the streets. is inciting anger. . Monthly inflation is likely to exceed 10% in August, analysts say.
This has also boosted the outsider’s radical presidential candidate, Javier Milai. He came in first place in the open primary in August, defeating the two traditional major parties and becoming the front-runner in what remains an uncertain race.
He has vowed to dollarize the economy over time and shut down central banks, blaming a “caste” of political elites for the raging economic crisis, and supporters who love his caustic, no-holds-barred style. I’m rooting for you.
“I’m so scared of what’s going to happen next.”
Nora Marful, 63, a former banker, said she felt no presidential candidate represented her as a working Argentine. Millais will face Economy Minister Sergio Massa and conservative former security minister Patricia Bulrich.
“I’m very afraid of what’s going to happen. It feels like what I went through many years ago, in 2015, in 2001,” he said, referring to the country’s past economic crises.
“The way I see it, these characters focus on certain areas, wealth, happiness, the upper class. They forget about the middle class and the poor.”
The late 1980s were dominated by inflation, but the period around 2001 saw a more serious economic and political crisis, with a revolving door of presidents, including Fernando de France, who fled by helicopter from the presidential palace during riots. Mr. La Rua was also there.
Sporadic looting of stores and supermarkets in Argentina in recent days led to more than 100 arrests, but the violence has subsided in recent days.
“The issue of looting and everything that’s been going on lately has been very unpleasant for me because I lived through a very ugly 2001,” he said, who has three daughters and previously worked in finance. said Jorge del Teso, 68, a retiree who worked in the industry.
“People are just tired of politics.”
Report by Lucila Sigal.Editing: Nicholas Misculin, Adam Jordan, Alistair Bell
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