Argentinians drown in spiralling inflation at nearly 100% | Business and Economy News

The South American country, which has been battling soaring prices for years, has seen annual inflation as high as 98.8%.

Argentina’s inflation rate has hit 100%, the government said on Tuesday, with savers feeling more pain from some of the world’s fastest-rising prices and worker budgets strained as costs far exceed wages.

The South American country, which has struggled with escalating prices for years, saw a monthly inflation rate of 6% in January, in line with forecasts, while the annual figure hit 98.8%, the highest level since hyperinflation in the 1990s.

Gisella Saluzzo, 30, a doctor in Buenos Aires, had to tighten her belt.

“The truth is that I live day to day, I look for low prices, I go to the market. We look for cheaper meat, cheaper vegetables and hunt for online promotions for a living,” she told Reuters news agency.

Rampant inflation has collapsed the economy, forcing the central bank to raise interest rates to a staggering 75%. It has been hit hard by the popularity of the centre-left Peronist government of President Alberto Fernandez ahead of October’s general election. The conservative opposition now leads in the polls as Argentines are fed up. inflation, and many blame it on economic mismanagement and government printing of money.

Brian Muliane, a 33-year-old chiropractor, says that amid inflation and taxes, his business struggles to survive.

“In our business, between paying for this and that, along with taxes, they are drowning us,” he said. “There are many people who cannot even work.”

Inflation ends 2022 at 95% and could still accelerate this year despite government measures to combat it. Many people are forced to change their shopping habits and cut back on luxuries.

“There are things I stopped buying because I said no, it can’t go up in price like this,” said 50-year-old teacher Andrea Mendoza as she went out shopping. “So I don’t buy certain things, I change habits or buy incentives.”