Argentina's Ongoing Battle with High Inflation

Causes and Consequences

Argentina's struggles with inflation have deep-rooted causes dating back to the 1980s. However, recent events, including the COVID-19 pandemic and the ongoing war in Ukraine, have exacerbated the situation.

Austerity vs. Spending

Argentina serves as a counter-example to the "austerity is always bad and endless government spending is not" narrative. The country's unique political, economic, and historical circumstances have shaped its inflation problem.

Recent Trends

Argentina's consumer price index rose by 4.6% in June, a slight increase from May's 4.2%. This marks the end of a five-month trend of cooling inflation, raising concerns about the country's ability to control the situation.