“Do you think 9% inflation is bad? Try 90% headlined this Saturday the prestigious newspaper New York Times.
In the article he compares the soaring cost of living in the USA with inflation in Argentina, relying on the forecast made by different private consultants where they indicate that by the end of 2022 it will reach 90%.
In the world’s largest economy, the cost of living reachedl 9.1% yoy last month, the highest rate in four decades, in a jump driven mainly by the rise in fuel prices. The New York Times he sought to mitigate the concern of the Americans by comparing that reality with the pockets of the Argentines.
The newspaper indicated that “many economists expect inflation (in Argentina), which is already 64% year-on-year, to reach 90% in December”.
The data shrinks the latest measurement from the US Bureau of Labor Statistics. He even talks about “one of the worst economic crises in the country in decades, and that is saying a lot in the case of Argentina.”
The history of hyperinflations in Argentina
The newspaper reviews the hyperinflations unleashed in the last 50 years and talk about the interest of Argentines in buying dollars.
He says that in Argentina people “they hide dollars in their underwear to go do some important transaction.
One of its paragraphs interviews a Venezuelan immigrant who wonders with anguish: “Have I emigrated to the right country?”
However, the New York newspaper highlights that Argentina is “a mixture of resilience, adaptation and strength”.
According to the newspaper this shows that people will find a way to adapt to years of high inflation, living in an economy that is “impossible to unravel almost anywhere else in the world.”
Inflation predictions according to private consultants
Analysts estimate different inflation rates for the remainder of 2022.
July closed with an inflation of 7.5%, which meant an increase of 2.7 percentage points in relation to the previous survey.
Towards the end of Augustprivate consultants estimate that prices will rise 6% (1.5 percentage points above last month).
For September expect inflation to be cut to 5.5% (a monthly increase of 1 percentage point).
In october analysts expect the Consumer Price Index to mark 5.3% (a difference of 1.1 percentage points in relation to the previous REM).
According to forecasts, inflation would decline again in november, when would it be 5% (0.8 percentage points higher than the previous survey).
However, the IPC would rise again in december, when would it be 5.1% (also 0.8 percentage point above the report from early July).