Argentina reached the inflation it expected for all of 2022; protests increase

One of the main streets of Buenos Aires, Avenida 9 de Mayo, was used by the demonstrators to move to the Executive headquarters, the Casa Rosada, where they stood raising banners rejecting the International Monetary Fund and demanding that the money it finances external debt is used to relieve the most vulnerable sectors of the national territory.

“We are going to stay in Plaza de Mayo because the situation is getting more and more serious. 50% of the population is below the poverty line, and the percentages of indigence are increasing more and more. Inflation in food products is at 8%, they have just changed the Minister of Economy and nothing has changed”, declared Nahuel Orellana, a participant in the protest.

Citizens also request a bonus of approximately 148 dollars per person to offset the effects of inflation and demand an extension of the work programs established by the State for citizens living in poverty.

“The dependent workers come to the soup kitchens to eat because they can’t make ends meet. That is why we must be in the streets. And if they (the government) continue with their plan, we will stay in the streets,” said Vilma Ripoll, a member of the Socialist Workers Movement.

Last March, the Government closed an agreement with the IMF to reschedule the approximately 44,000 million dollars of debt that the country of the Southern Cone contracted with the economic entity, for which citizens fear that the adjustment will be applied in the coming days. promised to the international body.

“The people have to protest in unity, both employed and unemployed workers. We do not support this recipe from the Fund (IMF). We cannot continue in misery. We cannot go to the grocery store to buy there is no supply of products, such as oil, flour and sugar. So it is not very easy in a country, which is, as I always say, very rich but poorly governed”, pointed out Monica Sulle, one of the protesters.

An inflation that does not stop

This same Thursday, the National Institute of Statistics and Censuses of Argentina reported that the inflation projected for all of 2022 was reached in this first half of the year, with an accumulated 36.2% and 64% from June 2021 to June of this year.

Among the sectors most affected by the rise in prices are housing, health, water, food, electricity and other fuels due to the increase in rates for basic services, among others.

The institute’s report also states that by May 2022 the basic basket for a family of four was close to 813 dollars, despite the fact that the minimum wage for the date was 317 dollars, while unemployment currently reaches 7 % and poverty covers 37% of the population.

If inflation continues to advance at the same rate, experts say that by December of this year the rise will be close to 80% and would become the highest since 1991, when consumer prices increased by 84%.

“Inflation and the fiscal deficit are financed with the printing of paper money. No matter how much that impression stops at a certain moment, there is always a lag,” said the economist Miguel Boggiano, who also assured that Argentina greatly increased the nominal value of the currency before the monetary issue.

In addition, the currency is under strong pressure, despite the existence of an exchange control since 2019 that has been tightening over time. This Thursday, the official exchange rate was 135 pesos per dollar, but on the black market it was quoted at 290 pesos per dollar.

The Government’s Response

Hours before the INEC report was released, the presidential spokeswoman, Gabriela Cerruti, alleged that when the current government took power, inflation was 50 points, a problem with which she assures they are “dealing with and working since then, using all the tools possible”.

Cerruti also highlighted the work carried out by the new Economy Minister, Silvina Batakis, in the application of market control tools and agreements with supermarkets.

“The Government takes a number of measures that have to do with the macroeconomy, with the ordering of expectations and specific tools, such as Careful Prices, if there were remarks for speculation, we hope that they do not play with the table of the Argentines,” Batakis pointed out. .

However, different sectors assure that the answers given by the Executive are not enough, which is why the demonstrations have been increasing since last Wednesday, when the agricultural sector carried out a 24-hour strike in the commercialization of grains and livestock, At the same time, they went out to the main routes of the country demanding relief in the tax burden, better supply of supplies and fuel.

Argentina is considered one of the largest food producers in the world and it is estimated that this year agro-industrial exports will reach a record figure of 41,000 million dollars, approximately 3,000 more than last year.

With information from Reuters, AP, AFP and EFE