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Saturday, August 24, 2013

Argentine Inflation

Dubious daughter sent me this price comparison this morning from Beunos Aires. From my limited Spanish it looks like the price of the bread in Argentina is now four times higher than what it was five years ago. (The increase was 300%, which is three times the original price, added to the original price. i.e. 4 times 2.5 equals 10.) The average price increase of the six items shown here is 270%, which translates to a rate of inflation of 22% per year (1.22^5 = 2.7).

22% is not hyper-inflation, but it's not good, and that's just a rough average. I don't know whether it has been getting worse or better. And it doesn't really matter if wages aren't keeping up, or you can't find a job.

Remember the Monroe Doctrine? The one where the USA kicked Europe out of South America? The result of our stewardship, is you want to call it that, is not all that impressive.

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