Argentina’s Monthly Inflation Drops to 2.7% Following Cuts in Government Spending and Subsidies

Argentina’s monthly inflation dropped to 2.7 per cent in October, reaching its lowest level in three years. The country’s statistics agency announced this figure on Tuesday. The country’s annual inflation still remains one of the highest in the world, with a slight decrease from 209 per cent in September to 193 per cent.

This decline follows deep spending cuts introduced by President Javier Milei after he took office in December 2023, when monthly inflation was 25.5 per cent. Milei’s policies include ending subsidies for energy and transport, reducing public sector jobs, and significantly cutting government spending. These measures have led to Argentina’s first budget surplus in 15 years. However, poverty has risen sharply, affecting 52.9 per cent of the population.

While Milei’s approach has kept monthly inflation below 5 per cent since May, Argentines still face the effects of high annual inflation. Average wages have grown by 181.9 per cent over the past year, but prices have risen even faster, making it hard for many to afford daily necessities.

Nigeria faces similar inflation struggles, but the Nigerian government has not enforced any budget cuts, unlike Argentina. Over the past year, Nigeria’s inflation rate surged from 22.8 per cent in June 2023 to 34.19 per cent in June 2024, the highest in 28 years. This increase is fueled by naira depreciation and a 40.9 per cent rise in food prices, worsened by fuel price hikes and flooding in agricultural areas. Rising costs are pushing more Nigerians into poverty and straining household budgets.

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