Argentina’s inflation has dropped to a five-year low of 84.5 percent in January due to austerity measures, yet many citizens still face economic hardship. Over a third of the population remains in poverty. Individuals like Sonia Mereles and Mauro Galarza exemplify the ongoing struggles with rising costs of living and insufficient wages despite improving inflation figures.
Argentina has experienced a notable decrease in inflation, reaching a five-year low of 84.5 percent in January, following austerity measures intended to stabilize the economy. This marks a significant reduction from triple-digit inflation rates, which peaked at nearly 300 percent in April 2024. However, the decline in inflation has not yet led to palpable improvements in the daily lives of citizens, and many continue to struggle with the high costs of living.
The monthly inflation rate recorded in January was a modest 2.2 percent, contrasting sharply with the excessive monthly spikes that surpassed 25 percent in prior years, particularly affecting prices of essential goods. Despite these encouraging figures, over a third of Argentina’s population remains in poverty, exacerbated by a severe recession attributed to government-imposed austerity.
Individuals like lawyer Sonia Mereles are emblematic of this ongoing struggle. Mereles financially supports her retired parents while grappling with her own rising expenses, which include a rent that increases quarterly based on inflation. “It is very difficult for a daughter to cover all the expenses such as rent, food and money to help my parents,” Mereles expressed, highlighting the financial strain many experience.
Similarly affected is Mauro Galarza, a waiter in Buenos Aires, who notes that his earnings are insufficient to meet his needs and observes a decline in customer tipping due to escalating prices. “But when it comes to tips, they don’t have more; and for us, a large part of the salary is made up of tips,” Galarza stated, exemplifying the pressures on workers in the service industry.
The ongoing inflationary pressures have compelled restaurants and hotels in Argentina to continually raise their prices, further limiting consumers’ ability to dine out. Additionally, veterinarian Cecilia Mansilla shared that she is now forced to select only essential medications for her practice due to rising costs.
In summary, while Argentina’s inflation has shown signs of decline, many citizens continue to face significant economic challenges. With a high poverty rate and rising costs of basic necessities, the positive inflation statistics have yet to translate into real improvements for the populace. The daily struggles expressed by individuals reflect the broader issues that persist despite governmental attempts at economic stabilization.
Original Source: www.chinadaily.com.cn
