A Dizzying Economic Crisis
Upon taking office on December 10, Milei promptly devalued the Argentine currency, unleashing a wave of price increases that has left many of the country’s 46 million citizens struggling to cope with the worsening economic downturn. The impact of these skyrocketing prices has prompted individuals and businesses to reassess their strategies for survival.
Fernando González Galli, a high school philosophy teacher in Buenos Aires, expressed his constant worry since Milei’s election. In an effort to weather the economic storm, Galli has tightened his budget and indulges in panic-buying, converting his Argentine pesos into goods before their value diminishes further.
Rapid Inflation Takes Its Toll
Nahuel Carbajo, the owner of Naranjo Bar, a trendy wine bar in Buenos Aires, echoed the sentiment of many Argentines, stating that prices have escalated at an unprecedented rate. The price of premium steak at Carbajo’s establishment has soared by 73 percent, zucchinis have seen a 140 percent increase, and avocados now cost 51 percent more than at the start of the month.
Milei’s spokesman, Manuel Adorni, insists that accelerating inflation is an inevitable result of rectifying Argentina’s distorted economy. The nation has long been plagued by economic crises, marked by chronic inflation, increasing poverty rates, and a plunging currency.
Prior Expectations and Actions
The weeks leading up to Milei’s inauguration saw a surge in prices as consumers anticipated his new policies. Upon taking office, Milei swiftly implemented spending cuts and devalued the peso by 54 percent, aligning it more closely with market valuation.
In November, prices increased by 13 percent from the previous month, with economists predicting an 80 percent surge through February. Rising gas prices, which spiked by 60 percent from December 7 to December 13, are a leading contributor to the forecasted price hikes.
Unending Struggle for Survival
As prices continue to rise, labor unions negotiate significant raises that ultimately fail to keep pace with inflation. Informal workers, such as nannies and street vendors, who constitute nearly half of the economy, do not benefit from such wage increases.
Milei recently issued an emergency decree that significantly reduces the state’s role in the economy and eliminates numerous regulations, prompting public protests by displeased citizens. Meanwhile, ordinary Argentines are left grappling with their limited resources as they try to maneuver through the ever-increasing complexity of economic survival.
Roberto Nicolás Ormeño, the owner of El Gauchito, a small empanada shop in downtown Buenos Aires, likens daily life to a challenging university exam, where a constant need to adapt and strategize is crucial. Residents are cutting back on purchases, switching to cheaper brands, and exploring alternative suppliers to mitigate the effects of inflation.
Marisol del Valle Cardozo, a mother with a three-year-old daughter, has resorted to reducing expenses and using air conditioning sparingly. Although she received a raise this year, it no longer suffices due to the surging gas prices. Even driving for Uber does not offset the impact of rising fuel costs.
For many Argentines, living under the illusion of stability has shattered, leaving them to face an uncertain reality characterized by economic volatility and the incessant pressure to navigate an ever-changing landscape.