Miguel Lo Bianco
Tue, March 12, 2024
Argentines face daily race for deals as inflation soars above 100% in Buenos Aires, Argentina
By Miguel Lo Bianco
BUENOS AIRES (Reuters) - Sandra Boluch, a fruit and vegetable seller in Buenos Aires, is seeing a worrying trend as inflation soars over 250%: sliding sales and more people scavenging for what she throws away, hoping to find enough for a meal.
The South American country is going through its worst economic crisis in decades, with the new government of libertarian Javier Milei trying to slay triple-digit inflation with tough austerity, a move that is boosting the state's finances, but is squeezing people hard.
A report last month suggested poverty was nearing 60% from 40% a year earlier, putting pressure on Milei's reform plans and spending cuts to show quick results as anger simmers around the country and people tighten their belts trying to survive.
"We have some containers in the back where the garbage is disposed of and when you go with a box, you see 20 people coming up to you to see what they can take as a plate of food to their table," said Boluch, adding it had happened before but she was now seeing many more people.
"The truth is that it's something very tough, very sad because there are a lot of people and a lot of older people."
Milei, battling an inherited crisis, has rolled out some tough measures to combat it, including painful cuts to state spending, targeting subsidies for things like utilities and transport, while looking to streamline welfare programs.
His government devalued the peso by over 50% in December, which pushed up inflation further. Prices, even in dollar terms, have started to climb, with Argentines of all ilk feeling the pinch.
"It's very severe," added Boluch. "People are taking less amounts, their wallets are really hurting."
The government will release February inflation data later on Tuesday, with estimates the monthly rise will come in around 15.3%, down from over 20% in January and 25% the month before. Annually it will remain above 250%.
However, Milei has said March could be "complicated", and signals in the economy have looked bleak, with tumbling sales, activity and production, even as the austerity measures have squeezed pensions, state salaries and public investment.
"The impact of the cost of food is just brutal," said Ines Ambrosini, a 62-year-old who tries to shop in wholesale markets to find deals.
"Everything costs a lot of money, the food, the fruit, the vegetables, the meat, the dairy products. Coming to these markets helps you take care of your wallet a little more."
(Reporting by Miguel Lo Bianco, writing by Nicolás Misculin; Editing by Josie Kao)
Argentina inflation, world's highest, slows down in boost for Milei
By Miguel Lo Bianco
BUENOS AIRES (Reuters) - Sandra Boluch, a fruit and vegetable seller in Buenos Aires, is seeing a worrying trend as inflation soars over 250%: sliding sales and more people scavenging for what she throws away, hoping to find enough for a meal.
The South American country is going through its worst economic crisis in decades, with the new government of libertarian Javier Milei trying to slay triple-digit inflation with tough austerity, a move that is boosting the state's finances, but is squeezing people hard.
A report last month suggested poverty was nearing 60% from 40% a year earlier, putting pressure on Milei's reform plans and spending cuts to show quick results as anger simmers around the country and people tighten their belts trying to survive.
"We have some containers in the back where the garbage is disposed of and when you go with a box, you see 20 people coming up to you to see what they can take as a plate of food to their table," said Boluch, adding it had happened before but she was now seeing many more people.
"The truth is that it's something very tough, very sad because there are a lot of people and a lot of older people."
Milei, battling an inherited crisis, has rolled out some tough measures to combat it, including painful cuts to state spending, targeting subsidies for things like utilities and transport, while looking to streamline welfare programs.
His government devalued the peso by over 50% in December, which pushed up inflation further. Prices, even in dollar terms, have started to climb, with Argentines of all ilk feeling the pinch.
"It's very severe," added Boluch. "People are taking less amounts, their wallets are really hurting."
The government will release February inflation data later on Tuesday, with estimates the monthly rise will come in around 15.3%, down from over 20% in January and 25% the month before. Annually it will remain above 250%.
However, Milei has said March could be "complicated", and signals in the economy have looked bleak, with tumbling sales, activity and production, even as the austerity measures have squeezed pensions, state salaries and public investment.
"The impact of the cost of food is just brutal," said Ines Ambrosini, a 62-year-old who tries to shop in wholesale markets to find deals.
"Everything costs a lot of money, the food, the fruit, the vegetables, the meat, the dairy products. Coming to these markets helps you take care of your wallet a little more."
(Reporting by Miguel Lo Bianco, writing by Nicolás Misculin; Editing by Josie Kao)
Argentina inflation, world's highest, slows down in boost for Milei
Jorge Otaola and Miguel Lo Bianco
Tue, March 12, 2024
Argentina battling with an annual inflation heading towards 200%
By Jorge Otaola and Miguel Lo Bianco
BUENOS AIRES (Reuters) -Argentina's monthly inflation rate slowed down more than expected to come in at 13.2% in February, a boost for libertarian President Javier Milei who is pushing tough austerity to try to tame the world's fastest-rising prices.
The still sky-high monthly rate, published on Tuesday, marks a deceleration from January, when prices rose 20.6%, and December, when they were up 25.5%. Analysts polled by Reuters had expected February's inflation rate to land at around 15%.
The 12-month rate through February, however, rose to 276.2%, below a poll forecast of 282.1%, but cementing Argentina's position as having the world's worst inflation, which is hammering people's spending power and driving up poverty.
"The impact of the cost of food is just brutal," said Ines Ambrosini, a 62-year-old who shops in wholesale markets to find deals. "Everything costs a lot of money, the food, the fruit, the vegetables, the meat, the dairy products."
Milei, battling an inherited crisis, has rolled out some tough measures to combat inflation, including painful cuts to state spending, targeting subsidies for things like utilities and transport, while looking to streamline welfare programs.
His government devalued the peso by over 50% in December, which caused prices to leap even faster, so he needs to demonstrate - and quickly - that his economic plan is bearing fruit to keep people onside and avoid unrest on the streets.
Sandra Boluch, a fruit and vegetable seller at a market in Buenos Aires, said she was seeing a worrying trend as inflation soars: sliding sales and more people scavenging for what she throws away, hoping to find enough for a meal.
Poverty is heading toward 60%, according to a report in February, while UNICEF warned on Tuesday that child poverty in Argentina could even hit 70% in the first quarter of the year unless protections were strengthened.
"We have some containers in the back where the garbage is disposed of and when you go with a box, you see 20 people coming up to you to see what they can take as a plate of food to their table," said Boluch, adding that the numbers coming was rising.
"The truth is that it's something very tough, very sad because there are a lot of people and a lot of older people."
Milei's office on social media platform X said after the data was published that the slowdown was due to the government's work to impose "strong fiscal discipline." In a sign of confidence on inflation, the central bank late on Monday cut the interest rate to 80% late.
However, the president has signaled that March could be "complicated," as signals in the economy have looked bleak, with tumbling sales, activity and production.
(Reporting by Hernan Nessi and Aida Pelaez-Fernandez; Editing by Kylie Madry, Adam Jourdan and Jonathan Oatis)
Argentina inflation slows for a 2nd month as President Milei keeps pushing austerity measures
Associated Press
Tue, March 12, 2024
FILE - Argentine President Javier Milei leaves an event in Buenos Aires, Argentina, Jan. 26, 2024. The organization Human Rights Watch warned, Thursday, Feb. 29, 2024, that the security policies adopted by Milei and his confrontation with the opposition in Congress pose a risk to democracy and human rights in Argentina. (AP Photo/Natacha Pisarenko, File)
BUENOS AIRES, Argentina (AP) — Argentina’s inflation slowed in February for a second consecutive month, as right-wing President Javier Milei continues to push austerity and deregulation measures in an effort to revive the country’s struggling economy.
According to figures released Tuesday by the government’s INDEC statistics agency, Argentina's monthly inflation slowed down to 13.2% in February, compared to 20.6% in January and 25.5% in December. On a yearly basis, however, inflation remains the highest in three decades, topping 276.2% in February.
Government officials and analysts foresee a surge in prices in March due to a combination of increases in the price of energy, fuel, private education and medical services, among others.
Milei's government said in a statement that February’s inflation rate was the result of a “strong fiscal discipline.”
A self-described anarcho-capitalist, Milei assumed power in December and almost immediately announced a series of shock measures, including a 50% devaluation of the nation’s currency in hopes of eventually bringing the country’s roaring inflation under control.
As part of those measures, the government eliminated some state subsidies in energy and transport.
Milei has announced a painful adjustment plan aimed at staving off hyperinflation and warned that the measures would initially have a “negative impact on the level of activity, employment, real wages, and the number of poor and indigent people.”
It is estimated that around 40% of the population live in poverty.
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Argentina's FX reserves buys hits $10 billion under Milei
Jorge Otaola and Walter Bianchi
Wed, March 13, 2024
The facade of Argentina's Central Bank is pictured in the financial district of Buenos Aires
By Jorge Otaola and Walter Bianchi
BUENOS AIRES (Reuters) - Argentina's central bank purchases of foreign currency since libertarian President Javier Milei took office in December are set to top $10 billion on Wednesday, Reuters calculations show, as the government looks to erase a deep net reserves deficit.
The milestone in just three months underscores how Milei, an outsider economist, is making stabilizing public finances his priority, helping the country beat reserve accumulation targets with major lender the International Monetary Fund (IMF).
"It's an encouraging data point in terms of managing international reserves," said consulting firm EcoGo. "The IMF's reserve accumulation goal has already been met for March and is only $2 billion away from December's target."
The central bank has bought dollars almost every trading day - aside from two days selling - since Milei's Dec. 10 inauguration, with purchases accelerating in March. Net reserves overall still remain in negative territory around -$1.5 billion.
That accumulation has also come amid a tough austerity and cost-cutting drive by Milei, which has dampened economic activity, growth and production, weighing on demand for dollars from companies and individuals. Inflation is also over 275%.
"The deepening of the recession and inflation promotes sales of foreign currency hoarded by companies and individuals," said consulting firm GMA Research, adding this was helping spur the central bank build-up of hard currency.
Milei recorded a shock election win last year pledging a major overhaul of Argentina's economy after years of crises, which he has blamed on regular deep fiscal deficits from over-spending by the state. He has pledged a "zero" fiscal deficit this year.
The build-up of dollars is also important to his longer-term goal to remove currency controls and eventually dollarize the economy, though that still remains some way off.
"Beyond the positive aspect of the accumulation of reserves, I don't believe the controls will be lifted yet as they need to wait and see how the central bank's balance sheet keeps improving," said Buenos Aires-based economist Gustavo Ber.
Mediterranean Foundation said the improvement in reserves and calmer markets had pushed up dollar deposits at banks, which fell last year during election uncertainty. They have climbed to $16.5 billion from $14.1 billion when Milei took office.
The government is also hoping the upcoming harvests of soy and corn - Argentina's main exports - will bring in a new wave of foreign currency, though some analysts warned a recent rally of the peso in parallel markets could cause farmers to hold off on sales as they get less local currency for their dollars.
"In a worst case scenario, we could get to a point where exporters are tempted to delay exports," said Portfolio Personal Inversiones. "That would play against reserves accumulation."
(Reporting by Jorge Otaola and Walter Bianchi; Additional reporting by Adam Jourdan and Hernán Nessi; Edited by Nicolás Misculín and Bill Berkrot)
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