Argentine President's successful fight against inflation! The inflation rate has reached a four-year low, Vitalik comments: a stunning transformation

Ethereum co-founder Vitalik Buterin wrote on Twitter: 'ARS/USD is at the same level as a year ago. This is quite an impressive shift for a currency that seemed unstoppable on the path of rampant inflation. The inflation rate has also been rapidly decreasing in recent months.'

The Argentine currency ARS has been suffering from inflation for the past few years, which has not only attracted international attention but also led to strong criticism of the central bank's monetary policy in the cryptocurrency community, and hopes that cryptocurrencies can change the local store of value. However, under the policy regulation of the Argentine government, the vicious phenomenon of inflation is undergoing transformation.

Argentina's inflation drops to a four-year low, economic dawn emerges

According to data released by the National Institute of Statistics and Census (INDEC) on Wednesday, Argentina's monthly inflation rate in November dropped to 2.4%, the lowest level in four years. This result has ignited hope among local residents who have been suffering from the economic crisis, and they are hopeful that the most difficult period may be over.

This data, not only lower than the market expected 2.8%, but also better than the 2.7% in October. At the same time, the annual inflation rate has dropped from 193% to 166%. These changes have led many observers to believe that Argentina's economy may be gradually recovering from the trough.

How does Argentina survive the economic crisis?

Under the background of Argentine President Javier Milei's implementation of austerity fiscal policy, Argentina is facing severe economic challenges.

The government of Milei is cutting public spending to improve the fiscal deficit and reduce the monthly peso devaluation rate, planning to decrease it from the current 2% to 1%. Minister of Economy Luis Caputo stated that the inflation data this time is the lowest record since July 2020, representing a key step in economic recovery. Although inflation is still high, it has dropped from its peak of nearly 300% in April this year to the current 166%, and experts predict that it is expected to further decrease to about 100% by the end of 2024.

Argentineans' thoughts on inflation easing are complex

For the general public, slowing inflation brings about complex feelings. Aida Segot, a teacher in Buenos Aires, said that her salary still cannot cover basic expenses. She said, 'I don't know much about inflation, but I know that my salary is exhausted all at once. I used to make it to the 20th of each month, now it's gone by the 12th.' However, Milei's support remains strong. Many people are still dissatisfied with traditional political forces due to the soaring prices and economic distortions of the past few years, which still provides him with a popular base.

According to official data, prices of educational goods and services saw the highest increase in November, followed by rents, utilities, and tobacco and alcohol prices. However, the price increase for food and non-alcoholic beverages was the slowest, which is good news for local consumers.

Can Argentina's economy be revitalized?

Argentina is still experiencing severe economic difficulties, including near-depletion of foreign exchange reserves, capital controls, and a poverty rate of up to 50%. However, the decline in inflation suggests that Milei's austerity policy seems to be taking effect. The future economic recovery will still depend on how the government balances austerity measures with the needs of the people.

Anyway, many Argentines choose to be patient with Milley. Interviewees said, "As long as we stick to this path, everything will be fine."

(Argentine liberalist Javier Milei elected president, will implement economic shock therapy)

This article: Argentine President successfully resists inflation! The inflation rate has reached a four-year low. Vitalik commented: Amazing transformation. First appeared on Chain News ABMedia.