By Miguel Lo Bianco
Buenos Aires ( Reuters )- With annual inflation still near 300 %, many Argentines claim they can still feel the benefit because food prices outstrip salaries, but Argentina’s monthly inflation rate in May was likely the lowest since 2022.
Annual inflation is still the highest in the world, even as the monthly rate has slowed, with rising food, utilities, and transportation costs making the minimum monthly wage in Argentina of 234, 315 pesos ($ 260 ) feel insufficient.
Silvia Castro, a 65-year-old retiree shopping for her groceries at a market on the outskirts of Buenos Aires, said,” I still do n’t understand how inflation can be going down.”
” Taxes are very expensive, services and gasoline are expensive, insurance is expensive, the social work ( health service ) that was meant to go down is the same or has risen”.
Argentina’s state claims to have managed to control inflation by putting in hard measures to stop key bank money printing, concentrate on rebuilding reserves, and minimize spending. However, it has a difficult time keeping citizens on the side of the market that is sluggish and the poverty rate rising.
The regular inflation rate is expected to have decreased for a second consecutive month in May, to fall to less than 5 %, compared to the previous low of over 25 % when Milei took office and abruptly devalued the local currency currency.
But Laura Basualdo, a 53- year- ancient merchant, said some people were struggling to acquire things as their earning power had been eroded by continually high inflation.
” I’m a merchant and I often see the customer on the other side who, clearly, if my prices do n’t work for them, they go out to look for other offers”, she said.
” We all have to buy around now. It’s sad, continually the wealth in our wallets gets lighter, less and less each day. It seems like eating is now a luxury.
( Reporting by Miguel Lo Bianco, Writing by Lucila Sigal, Editing by Sandra Maler )
